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Paradigm-shifts From Reading Rich Dad series Own Your Own Corporation by Author Garrett Sutton
By w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶ author Morgan Jassen
I'm reading Rich Dad series "Own Your Own Corporation"* by Author Garrett Sutton.
The book is shifing my paradigm of corporations, the financial world, and the world, and is giving me a tool to better my life and the lives of others.
Here is a general review of the book, including some of my responses to what I read.
I read the part where it states that a corporation can be the owner of a C corporation. It strikes me -- does this mean there can be infinite layers of corporations owning corporations?
Yet again my assumption was broken. I had implicitly assumed that only people could own corporations.
However it makes something else more clear in my mind. Something else that itself wasn't until recently obvious to me; a single person can own a corporation.
Sutton's book literally lays out a story of a lady setting up and running a corporation for herself, through which she channels and leverages numerous perks and tax breaks. She takes a salary paid by her company. This is possible because she is owner, executive, manager, and employee -- all in one person. And yet the book states it is possible, ethical and legal.
The story also shifts another paradigm for me by bringing to light what "Rich Dad"** mentions elsewhere-- a corporation is some paper in a folder in a file cabinet. It's made-up. It's something that exists to leverage income and to leverage tax laws.
The author Sutton has a way of simplifying the concept of corporate ownership, by removing mention of the day-to-day operations of the company. The author removes mention of the company's non-owner concerns (a.k.a. employee concerns) and of the company's client concerns, and focuses on the other side of the company -- the ownership side. By doing this, the author Sutton makes crystal clear a side of corporations that was before obscured to me.
Outside of this book, I largely see corporations and companies as groups of employees working for managers, for executives, for owners, and I largely see the owners usually being anonymous or private or unknown. Outside of this book, I feel that, as an employee/worker, it's not my business to ask, or know, about the ownership part. This book rather, tells the story where the owner is the hero, the protagonist, and even the victim.
My imagination soars; I'm envisioning all sorts of things. I'm imagining employee-owned companies where everyone is equal. I'm imagining me owning companies to leverage value back to myself. Then I'm imagining a world where every single person, tall and small (meaning no exceptions), owns a corporation and we all leverage them every day to support ourselves financially -- a world where every person takes all three roles -- a company owner, company manager, and company employee.
The odd thing is that the concepts written in the book seem so obviously true, and yet at the same time so foreign. In other words, I feel like an ignorant person learning important things for the first time. A big take-away after having read the book, is my surprise at realizing my own ignorance.
Where to go from here? An action-item going forward will be this: keep learning more about financial investing and about corporation ownership. Keep learning, so that eventually I'll know enough to better my life, and to better the lives of those around me.
In conclusion, I want to thank the author Sutton and their book for having helped start to shift my paradigm regarding corporation ownership. The book is a tool that I can use to start to become wiser about corporations, wiser about the financial world, and wiser about the world, and in doing so, I will be able to better my life and to better the lives of others.
* Start your Own Corporation : Sutton, Garrett (https://bpl.bibliocommons.com/item..._corporation)
** Rich Dad, Poor Dad : Kiyosaki, Robert T. (https://bpl.bibliocommons.com/..._poor_dad)
[2019-03-11 edit: Moved to: https://investorworker.com/2017/... .html.]