If you run a corporation or plan to someday, develop your financial IQ.
Running a corporation is a guaranteed way to make you rich, as long as you follow the above steps.
Learn financial literacy, aka accounting.
Learn to read and understand financial statements, so you can identify the strengths and weaknesses of any business.
Know the science behind supply and demand, so you can use it to your advantage.
Look at the current market—does your investment make sense or not? In a market where everyone is selling, it’s best to invest, as you will be able to invest for cheap. In time, when prices go up, you can collect on your profits.
Learn the law—especially the laws about taxes and lawsuits.
A corporation earns, spends everything it can, and is taxed on anything that is left—this is a legal tax loophole you can use to pay fewer taxes and make more money. For example, set car payments and insurance as company expenses. Or, have a vacation in Hawaii that doubles as a board meeting.
It is also important that you do your research on how having a corporation protects you from lawsuits—after all, we live in a litigious society!
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