I read recently in T.Harv Eker’s bestseller “Secrets of the Millionaire Mind” the following quote found on page 127:
“Start your own business, work on commission, get a percentage of revenue or company profits, or get stock options. Whatever your vehicle, make certain you create a situation that allows you to get paid based on your results.
Personally, I believe just about everyone should own their own business, be it full-time or part-time. The first reason is that by far, the vast majority of millionaires became rich by being in their own business.
Secondly, it’s extremely difficult to create wealth when the tax man is grabbing almost half of everything you earn. When you own your own business, you can save a small fortune in taxes by writing off a portion of your expenses for such things as your car, travel, education, and even your home.”
It’s true-just ask anyone who’s wealthy. It is extremely difficult to obtain working for someone else. But if more money is your choice, I firmly believe incorporation is the first and foremost step, even if you are unsure about what type of business you may be venturing into.
To do so yourself is simple, and most know all that is needed is a corporation name and a social security number. Register this business name with your state, and ask the IRS for an EIN (Employer Identification Number) and your set. However…
Credit Clue #9: It is a standard in the banking/lending industry that credit is not extended to a corporation or business unless it is over 2 years old.
I believe this one tidbit of information is why most businesses fail. Why?
Credit Clue #10: Corporate credit does not work like personal credit. It utilizes a separate credit reporting system. And if applications are attempted before this 2 year waiting period, the credit file of the business is hit-very hard and for a very long time.
There is a solution besides waiting 2 years. Look to my next post for the answer!