📖 Start Your Own Corporation by Garrett Sutton

Topic: Corporations | Medium: Kindle | Rating: 4/5

Note: this is written for US companies. Many concepts are applicable to Australia and the rest of the world. But I recommend you already have a basic understanding of your own country's corporation's law before reading this.

Three keynotes

1. Control assets through corporations

"Own nothing and control everything. Use the techniques of the rich to improve your financial standing and protect your family. And above all, work smarter instead of harder." (Sutton 2013)

2. Know the rules and stay compliant

"The shareholders, directors, and officers of the company must remember to follow corporate formalities. They must treat the corporation as separate and independent legal entity, which includes holding regularly scheduled meetings, conducting banking through a separate corporate bank account, filing a separate corporate tax return, and filing corporate papers with the state on a timely basis. Failure to follow such formalities may allow a creditor to disregard officers, directors, and shareholders. This is known as “piercing the corporate veil”." (Sutton 2013)

3. Determine your corporate structure

There is no one-size-fits-all. But consider:

• Asset protection.
• Taxation.
• Estate planning.
• Ability to obtain financing (both debt and equity). Corporate vs personal guarantees.
• Asset allocation e.g. operating entities holding fewer assets.
• Costs and compliance involved.
• Engage in professionals.

You don't need to know all the answers, but at least when it comes to engaging with a professional you can have a considered discussion.