That’s what Corporations are designed to protect
The power of the corporation to protect you from Robin Hoods
Accounting is financial literacy, or the ability to read numbers. This is a vital skill if you want to become rich. The more money you are responsible for, the more accuracy is required, or the house comes tumbling down. By learning to read financial statements, you can identify the strengths and weaknesses of any business.
Investing is the science of “money making money.” This involves strategies and formulas that use the creative right-brain.
Understanding markets is the science of supply and demand. You need to know the technical aspects of the market, which are emotion-driven, in addition to the fundamental or economic aspects of an investment. Does an investment make sense or does it not make sense based on current, market conditions?
A corporation wrapped around the technical skills of accounting, investing and markets can contribute to explosive growth. A person who understands the tax advantages and protections provided by a corporation can get rich so much faster than someone who is an employee or a small-business sole proprietor.
A corporation can do many things that an employee cannot, like pay expenses before paying taxes. Employees earn and get taxed, and they try to live on what is left. A corporation earns, spends everything it can and is taxed on what is left. This is one of the biggest tax loopholes that the rich exploit through corporations.
Protection from lawsuits
We live in a litigious society. Everybody wants a piece of your action. The rich hide much of their wealth in corporations to protect their assets from creditors. When someone sues a wealthy individual, they are often met with layers of legal protection and often find that the wealthy person actually owns nothing.
- Tax advantages