The book “Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them” is written by Garrett Sutton, Esq., a corporate attorney and asset protection expert. Sutton is a longtime advisor to Robert Kiyosaki (author of Rich Dad Poor Dad) and part of the “Rich Dad” advisory team. His expertise lies in business structuring, tax strategies, and legal protection for entrepreneurs and investors.
What the Book is About:
This book serves as a practical guide to understanding why owning a corporation or business entity is a cornerstone of wealth-building and asset protection for the affluent. Key themes include:
- Asset Protection Strategies:
- Explains how corporate structures (e.g., LLCs, S Corporations, C Corporations) legally shield personal assets from lawsuits, creditors, and business liabilities.
- Contrasts this with the risks faced by sole proprietors or those who “work for corporations” without owning one.
- Tax Efficiency:
- Details how business owners leverage deductions, write-offs, and tax-deferred growth unavailable to employees.
- Discusses income splitting, retirement plans (e.g., 401(k)s for businesses), and reducing self-employment taxes.
- Building Long-Term Wealth:
- Emphasizes how owning a corporation allows wealth accumulation through equity, scalability, and business valuation growth.
- Highlights the “rich mindset” of creating systems that generate passive income versus trading time for money.
- Step-by-Step Entity Formation:
- Guides readers on choosing the right entity type (LLC vs. Corporation vs. Partnership) based on their industry, goals, and risk tolerance.
- Warns against common mistakes (e.g., commingling personal and business funds).
- Case Studies & Real-World Examples:
- Analyzes how corporations protect high-net-worth individuals in lawsuits or bankruptcy.
- Exposes pitfalls of inadequate structuring (e.g., losing personal assets due to poor legal separation).
- Myth-Busting:
- Challenges misconceptions like “incorporating is too expensive/complicated” or “only big businesses need corporations.”
Who Should Read It:
- Entrepreneurs & Small Business Owners:
- Anyone starting or scaling a business who needs to legally protect personal assets (home, savings) from business risks.
- Real Estate Investors:
- Property owners seeking to isolate liabilities across multiple properties or partnerships.
- High-Income Professionals:
- Doctors, lawyers, consultants, etc., vulnerable to lawsuits who want to shield personal wealth.
- “Rich Dad” Followers:
- Readers of Robert Kiyosaki’s books looking to implement his “own the corporation” philosophy.
- Freelancers & Gig Workers:
- Self-employed individuals transitioning from informal work to formalized, tax-advantaged business structures.
- Retirement Planners:
- Those aiming to build tax-efficient retirement income through business ownership.
- Anyone Seeking Financial Independence:
- Individuals tired of the “earn-tax-spend” cycle who want to leverage corporate advantages for wealth creation.
Key Takeaways:
- Legal Firewall: Properly structured entities act as a “shield” against personal financial ruin.
- Tax as a Tool, Not a Burden: Corporations allow strategic income management to retain more earnings.
- Scalability: Ownership enables building systems that generate wealth without direct labor.
- Mindset Shift: Moving from “employee” to “owner” requires understanding legal and financial systems.
Why It Stands Out:
Sutton avoids abstract theory and focuses on actionable steps, blending legal insights with wealth-building tactics. The book is particularly valuable for:
- Risk-Averse Innovators: Those who want to pursue opportunities without jeopardizing personal finances.
- DIY Business Structuring: Readers who prefer to understand legal basics before consulting attorneys.
- Long-Term Thinkers: Individuals planning generational wealth or exit strategies (e.g., selling a corporation).
This book is not a substitute for professional legal/tax advice but equips readers to ask smarter questions and make informed decisions about corporate ownership.
