|
Maintaining Wealth: Know the Code |
Sunday, October 29, 2006 |
If you already "own" or have a controlling interest in some asset, you already have some wealth to protect. The forms that wealth can take very and each individual has to determine what it is that they feel is wealth. A man or woman may look poor to you and appear to be poor on a balance sheet, yet possess incredible resources which he or she may direct as he or she wishes within the law.
Protect your wealth through business structure: Whatever level of wealth you have, you will be more prepared to protect it if you can create an insulating layer of protections against claims by establishing a sound legal business structure. A competent tax-attorney or accountant should be able to lead you to some convincing conclusion aobut how you should organize your business, and will probably give a number of good reasons to set yourself up and an LLC or S-Corp to protect you assets in the event of a legal or financial claim. It could be that the best arrangement for you business venture is in the not-for-profit class. You can still earn a substantial income so long as your not-for-profit business files the proper paperwork and you work diligently to maitain its tax-exempt status. CEO of big charities are not there just because the get a nice office and good feeling when the go home.
Sound recordkeeping is critical: In terms of maintaining material wealth on of the keys is to understand accounting procedures or work with a professional accountant who does in order to help you keep your records straight and taxes up to date. Although I have personally, never seen any series of laws that explains to me (without any logical gaps or assumptions based on non-legislative material) why an individual would have to pay taxes as an individual, the matter does seem to be clear in relationship to corporate interests. And, this is important to remember. There are certain times, places, and circumstances that make sleight of hand and cunning a detriment to your long term survival and future well-being. Imagine that you are in a cellar casino and Bluto pats you on the arm and says its time to pay the fee for the padded seat and explains to that the fee is 10% of your earnings. The best idea is to do an accurate accounting and fork it over -before he claims more from you than you are ready to surrender. Taxation is where corporate owners consent that in exchange for the protections of the government they surrender to its authority to milk them. As long as you get along with the tax man, you can stay in the game.
Here an entertaining animation that you can use to remind yourself of this little fact:
|
posted by Domesticated Dog @ 7:44 PM  |
|
|
|
|