Corporations are one of the most powerful tools ever created by the rich for the rich-period. The cool thing is that you know the average man or woman can use this; powerful, wealth creating, asset protecting, power tool just as they do. The rich among us have been doing it for hundreds of years. Want to know more? Read on now.
The process of incorporation is a fairly simple one that anyone can do for themselves if they simply take a bit of time and research the Secretary of State’s website for the necessary information on how to create a corporation, LLC, LLP, Or S-Corporation in their state.
Once you have done your research and have learned the correct and lawful way(s) of establishing a corporation in your state, you will then want to contact the IRS so that you can get your Tax ID number-also known EIN number, so you can open up a corporate bank account and start conducting business.
The next step is that you should contact Dun and Bradstreet so that you can get your Dun’s number which you will need in order to build corporate credit, and start doing business with other corporations and venders in your field.
Corporations are viewed as a living breathing entity once they are brought to life by you and the Secretary of State, and should be treated as its own entity; keeping your business completely separate from you in every way, including banking and finances.
You should treat your corporation like a big business- not a “Mom and Pop Operation.” You should always refer to your corporation as if it is your corporation, as if it is your employer, not the other way around to avoid any confusion with people or other businesses that you may be dealing with.
The primary reason for keeping you separate from your corporation is so that you reduce the risk of the having your corporation shield pierced in a lawsuit or by the IRS if anything should happen.
7 Reasons Why and How You Should Incorporate
A corporation in all of its different forms has proven to be one of the best ways to protect your assets and do business without bringing the pain of financial ruin ever created by the rich, so why shouldn’t you use it for the same reason.
Corporations allow you to get thousands of dollars in unsecured lines of credit that can never ever be placed on your personal credit report, even if every dime that your corporation borrowed was not able to be paid back to the creditors.
You can own as many corporations as you want. There are no limits to how many you can have. So just think, you could conceivably build credit across hundred of corporations and build a financial powerhouse.
Corporations can shield your personal assets from people that mean you no good.
Corporations can reduce your personal taxes
Corporations allow you to leave a legacy behind for those you love without the debt. Corporations can increase your chances of building a successful business faster than a sole proprietor business, which means building wealth faster.