Voila!

So you’ve started a business, and it’s going well. Now it’s time to use the income and the experience you’ve accumulated and take things to the next level. It’s time to become a sophisticated investor. As a sophisticated investor, you’ll take more control over management, corporate structure, investment decision making and taxes. The result? Maximized returns. Let’s look at a restaurant owned by Bill and Jane, two hard-working Americans. They operate as a sole proprietorship, which means that they have one income source. They pay normal, personal income tax and they are liable if anything goes wrong – like a sick customer filing a lawsuit. All their eggs are in one basket. No disrespect to Bill and Jane, but the sophisticated investor knows better. He would have two corporations: Bill would own the restaurant itself and Jane would own the building it’s in. This way, risk is spread. If a customer falls sick and sues the restaurant, the real estate is legally separate and protec