Asset Protection

Typical Asset and Tax Protection Questions

Question: “I need advice. I am reading “Rich Dad, Poor Dad” and it has peaked my interest in starting a corporation. It would be really small (I have little start up $) but, I like the idea of living off a corporation (obviously that would take years). My plan was to devote some $ for this corporation and invest in the stock mkt under this corporation name. Is this a good idea? I have researched on KY Sec. of State web and it does not seem really all that difficult to start a corporation. I might be missing something but all I see is the incorporation fee $50 and a yearly update to KY. With a corporation I would have to issue stock? How much do I issue and do I make it “no par value?” Your thoughts are appreciated” – Doug


Answer: “First of all, filing online is just the “cover page” of the corporation. You need all of the correct corporate Bylaws, Resolutions and tax elections. Frankly, I think this is a really poor idea in the circumstances you present. You should talk to a tax and estate planning lawyer to review your choices. For example, can you contribute to a Roth IRA or regular IRA? What about an employer’s matching 401k? These need to be reviewed before you take action. I hope this helps!” – Ron Cappuccio