I’m writing this to share a little bit of what I have learned so far on the subject of wealth-building and arranging your business entities in the U.S. You will, of course, need a functional business model, but this discussion is not about the entrepreneurial side as much as things to think about as you plan your own business ventures.

If you have millions of dollars, this topic is one you probably don’t need to deal with. You likely have a lawyer that can help you get sorted out. However, if you are a small start-up or solo entrepreneur (also known as “solopreneur”), you are the one that is responsible for every aspect of your business. You might be the sales office, service department, and accounting and legal too.

This topic is a venerable minefield and difficult for anyone to talk about for a number of reasons:

1. There is no one “best” answer. You might think that a Delaware Corporation is the best business structure for you. Until I researched this topic, that’s what I thought - because that business structure is what’s commonly used by big corporations.

But did you know that, depending on your circumstances, you still might have to get permission to conduct business in your own state? And, since you are conducting business there, you may have to file a return in both Delaware and your home state?

Though conventional wisdom might say a Delasome web sites may be quick to say that a Delaware Corporation is the best business structure,

1. The laws governing corporations, limited liability companies and other business structures are governed by each individual state. As such, there are hundreds of different possibilities

2. The decisions to make are very personal and will vary greatly from one person to another.

. You may find that the optimal business structure for you

Though there are similarities from state to state,

I have not read many articles on this subject - itcreating your own business entity.

Please remember: I am not an accountant or attorney. This is not legal or financial advice - it is for educational purposes only. Your mileage may vary.

It is not the purpose of this guide to provide tax adv

What pictures does the word “corporation” bring to mind?

In “Rich Dad, Poor Dad”, Robert Kiyosaki says that there are four areas of knowledge and expertise that make up what he calls Financial IQ. They are: Accounting, Investing, Understanding Markets, and the Law.

When you think of a corporation, what do you see? Does it seem like a big tall building - think of what Bank of America in Charlotte - or does it seem like a file folder?

“A corporation protects the rich. But what many people who have never formed a corporation do not know is that a corporation is not really a thing. A corporation is merely a file folder with some legal documents in it, sitting in some attorney’s office registered with a state government agency.”

A corporation is not a building, or a factory. It is a piece of paper. In Kiyosaki’s words, a “document that creates a legal body without a soul.”

One huge paradigm shift for us -

Robert Kiyosaki summarized it in his article, Work Hard, Earn Less:

After 1943, people who worked for money lost most of their tax breaks. Now, entrepreneurs and investors get the big tax breaks — and that’s another reason the rich get richer.

We started our company a few years ago and have seen what will be two years of the full year and tax cycle. There’s a lot I dno’t know - we are a small company - but here’s what I do know: just like Kiyosaki says in Rich Dad, Poor Dad, a corporation is nothing more than just a file folder. Every once in a while you have to file paperwork on behalf of the corporation.

Corporations versus PeopleIW( th jobs)
For both - Profits = Income - Expenses.
Corporations pay taxes on their profits. They can deduct their expenses.

People are taxed on their income. There are lots of audits from schedule C filers.

Corporation is a legal entity. It has legal rights just like people.