Review: Rich Dad Advisor Series: Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them
 | Rich Dad Advisor's Series: Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them (Rich Dad's Advisors) by Garrett Sutton, Robert T. Kiyosaki, Ann Blackman Read more about this book... |
When you start a business you are faced with a flood of decisions, some of which will have long lasting ramifications. Will your business be a sole proprietorship, partnership, corporation, or limited liability company? Which one is best? S Corp or C Corp?
First of all, this book validates the old adage that you just can't judge a book by its cover for two reasons: 1) it doesn't only just cover corporations and 2) it is a book with Kiyosaki's name branded on the cover that actually contains good solid advice inside. I'm serious-- this is the only Kiyosaki book that I would actually recommend (but only to a very small audience).
This book is a perfect primer on legal entities for entrepreneurs.
Once you disregard Kiyosaki's ramblings about childish fantasies, treasure hunting and ships, you get a book written primarily by Garrett Sutton, wherein he carefully presents a high level overview of the various legal entities, and their pros and cons. Sutton carefully steps through the intricacies of each of the legal entities (S and C Corp, LLC, Limited Partnership, General Partnership, sole proprietorship, and more). Salted in the chapters are fictional examples that illustrate the disastrous consequences of choosing poorly (or acting on bad advice) and common problems.
Perhaps most surprisingly, is that this book even touches on some tax issues like what happens when consultants opt for C corporations (hint: they become deemed Personal Service Corporation and you get slammed with a 35% tax rate). Personal Holding Corporations (PHC) are also touched on and perhaps most surprisingly of all, Sutton delves in to the legalities and hurdles with offering securities, SEC registration, angel investors, and more.
My distaste for Kiyosaki's writing aside, I'm happy to recommend this book, because I rarely come across a book on the nuts and bolts of business entities that is readable.
Labels: Business, Personal Finance, Reviews, Startup
