The idea of being penniless on paper

Last post I left you with a question , using the prior example how could we make ourselves appear penniless on paper? The idea of making ourselves penniless on paper is one great key to financial success, because I have mentioned numerous times the market is not safe, investing is risky and if your not willing to take the risk your not on the path to becomming a successful investor. A great investor will have plans for each market, whether the economy is doing great or poor, they have a plan to make it work for them.  Which brings me to my point of being penniless on paper. You always see people become instant millionaires from a great idea, facebook is a prime example. But what happens to a lot of these instant millionaires, they have never learnt to invest their money like the rich do, so they loose it they go bankrupt. Whether it be over a lawsuit or over spending of money.  This is because they did not properly secure their assets to make themself look poor, but their business rich.

When owning a corporation you and your business are seperate legal entities, anyone owning a sole propriotorship or partnership, if the business fails one or both partners is legally endebted to any liabilities, which can be paid off with personal assets like your home and cars if the partners defaulted. I believe that a corporation is the best choice because it is the most secure for the founder.

The idea of being penniless on paper is transfering all your assets into your business. Make your business earn the money , not you. When your business is the one earning all the money, one paper you can recieve many tax incentives, and breaks as well as keeping yourself secure incase of a lawsuit towards you it cannot directly harm your business or a lawsuit towards your buisness cannot directly effect you. Knowing how to harvest the idea of being penniless on paper will reward you greatly in your future endvaours.