QUOTE(damam @ Jan 4 2008, 07:50 PM)
i thought the fact that as an owner you had to pay 15% on social security (ss) as opposed to 7.5% as an employee, and therefore your paycheck as an owner was even less for say a an equivalent 50,000/yr income. Is that not right?
I think it is. However, as an owner you pay your personal corporation, then pay yourself from that. You could then buy a Hummer for your "corporation", and expense $25,000 because of it. A regular employee making the same money couldn't ever do that. So, I kinda worded my statement wrong. Being Self-employed gives you the opportunity to own more at the end of the day, compared to an employee who earns the same dollar-wise.
In a sense I am against personal corporations, but they are legal. On the other hand, they can serve as a protection for you, so I am considering getting one for myself. There are some people with many and individual ones can go bankrupt and the damage is minimal.
I have read Rich Dad, Poor Dad by Robert Kiyosaki and he gets into it. There is some more info here:http://en.wikipedia.org/wiki/Robert_Kiyosaki
I do not recommend the book. He is not detailed enough and leaves too many questions unanswered. But, the concepts appear to make sense. I am not a rich dad nor do I have one, so I don't know.
I can find out more details tomorrow. I am suffering from Dunning-Kruger right now.