This book will help you save more of your money. When you start generating money, you need to protect it and shelter it legally. Statistics show that 34 cents of each dollar meet interests, and 30 cents of each dollar is spent on taxes. These are huge bonuses to pay for success. It should not be so.
Why is this important to me? This book is a great resource if you decide to start your own business. You need to understand that there are risks that are easily mitigated if you spend time and set up correctly. Taxes can cost you up to 50% of your money. As you all know, our government agencies are efficient machines and reasonably spend our money - NOT! The government simply understands that these are incentives for business. They do this because enterprises create value and jobs. The key point here is the transition from “Tax accrual” to “income tax”. This slight difference is of great importance over time.
Lawsuits are a nightmare. Rich people sometimes get a bad rap, but it’s the bottom feeders that really need to be punished. It takes years to build up a reputation, and ANYONE can sue and destroy it, even if they lie. Law school has more lawyers than lawyers. These people must somehow make money, and that is why we are the most terrible country in the world.
This book contains a wealth of information. For the sake of time, I will talk about some things that have helped me in my business career. Diana has worked with Robert Kiyosaki in the past as an adviser to rich dad. You will see that this book falls under the command and legal areas of the BI triangle.
1. Team. You must have a good team. When you start making money in business, do NOT travel for pennies and hire incompetent advisors. Remember that you get what you pay for. You should have a good CPA, a lawyer and a coach. One bad contract can cost you your business.
2. Business organization. There are several types of legal rights, but the one you do NOT want is the sole owner. Depending on your circumstances, you can use LLC for real estate, S Corporations for business and C Corporations for business. Corporation C is unique in that taxes do not apply to you, and you can set it up from the end of the year. This synchronization feature is crucial for tax planning strategies. As you grow, you can use several objects to save money and create protection.
3. Asset Protection - “Call Mr. Lawyer today if you cut your finger!” You see these commercials all the time. The goal is for you to call. A lawyer on the phone asks you questions, and sometimes does some really quick searches based on a lawsuit. If they run into road blocks, they most likely will not take the BS case. But if the structure of your object is not configured correctly, they will continue. Unfortunately, there are people who have the right to mental abilities, and if they can get something for nothing, they will do it. If you are the sole owner and own your real estate and your business, then you have problems. If I slip and fall on your property, then I have a big chance to become a new business and property owner, and you will end up in a poor house.
Loop Holes of the Rich is an excellent resource and will help you properly configure your structures. If you meet with advisors, I suggest you first read this book to get an education. The best way to troubleshoot problems is to ask the relevant questions. Book Diane will help you with this.
Hope you found this summary summary useful. The key to any new idea is to work in your daily life until it becomes a habit. Habits are only 21 days.
One thing you can remove from this book is not an individual entrepreneur. This is a terrible entity, and you need to change it if you are serious about your business and financial future.
