Own Your Own Corporation by Garrett Sutton is a book in the Rich Dad’s Advisors series.
I’ve bought this book after reading Robert Kiyosaki’s Rich Dad Poor Dad. It’s written in a clear and easy to understand style.
I’ve always wanted to own a company in US, but didn’t really know if I should form a LLC or INC, which State is the best regarding taxes, what are the regulating laws and procedures involved in forming.
So I’ve read this Book in about a week – easy read, there’s 300 pages, but the last 100 is an appendix of Formation Requirements for each of the 50 states.
What I learned by reading this book:
- What types of legal entities are available? LP, LLC, C CORP, S CORP, General partnership, Sole Proprietorship.
- What are pros and cons of forming each one of them?
- Why Nevada is the best place to form a business in USA (hint: tax free, flexibility, privacy)?
- The actual steps in forming a company.
- How to protect your entity name?
- How to raise money for your new company?
- How to deal with employee issues and much more.
As I learned from the book, there is no one-type-fits-all entity. For example, if you are an affiliate marketer your best option would be to form a Limited Liability Company, because you will be the only member of the company.
But if you are a game designer or a start-up and you will want to raise capital for your product, forming a Corporation is a smart choice. The author goes quite deep into Raising Capital topic, explaining the basic requirements of Nasdaq Small Cap Exchange and New York Stock Exchange.
Beware: General Partnership and Sole Proprietorship are not good entities, because in case of lawsuit you are personally held liable for all the loses. People have lost their homes because of bad business practices. So after reading this book I decided to change my entity status ASAP! I advise you to do it too!
The book provides samples of Employment Agreements, Independent Contractor Service Agreement, Minutes of the first Meeting of Shareholders and more. You would probably want to consult with your attorney before using them, but it’s a cool thing to have a sample to start with.
Who will like this book?
There’s a lot of partial and confusing information about forming LLC or your CORP online. Don’t waste your time with that. If you are thinking about forming your own company and are not sure where to go, Own Your Own Corporation is an excellent starting point. Highly recommended for every entrepreneur! I am definitely keeping this book on my bookshelf!