Create Tax Deductible War Chests Against Business Disasters

Business.

Big tax benefits for smaller businesses - captive insurance companies... big tax benefits for smaller businesses. Successful PCs can also use this powerful tool for wealth accumulation and risk management.

Big business enjoys huge tax advantages by creating Captive Insurance Companies. - keego harbor, michigan. Mohn, CHFC, CLU, CAPP, CWPP has seen every financial planning technique. May 11, 2007 - In 25 years of developing asset management plans for physicians and other entrepreneurs, Keith L. He helps PCs achieve their wealth accumulation and transfer goals with the" captive insurance company( CIC) ." "Captives aren' t for everyone, " emphasizes Mohn. "But for PCs fitting a certain profile, a CIC may be the' Holy Grail' of planning. " Ideal candidates - - successful owners/ professionals with predictable annual profitability of$ 500, 000+ - - can deduct up to$ 2 million annually. Create tax deductible war chests against business disasters. Convert current income into capital gains.

Self - insure risks with pre - tax dollars, knowing funds are inaccessible to creditors of business or owners. - risks that may be covered by a cic: administrative actions. computers, data recovery. key employees. employee/ executive/ professional liability. business income loss. litigation expense. ecommerce risk. directors/ officers. kidnapping/ ransom. sexual harassment. income tax indemnity. deductibles/ gap coverage. The CIC underwrites risks of companies owned by the same owner( s) - - risks associated with the practice or medical facility that are not easily or cheaply covered by commercial insurance. Policies can be labeled" litigation expense only" - creating a pre - tax war chest to fight lawsuits, while protecting assets against claims. "Premium dollars" are moved out - - away from creditors. Advantages. Better statutory protection for reserves due to requirements to pay claims. Because premium payments are made" for value" it' s difficult for creditors to prove fraudulent transfer. Creditors are less likely to force judgments. When no longer useful, captives can be terminated, capital gains declared, assets distributed, taxes paid - - providing optimum tax benefits. Captives formed under 831( b) have straightforward tax reporting - - like a simple" S" corporation.

The properly structured CIC is a powerful planning tool for the right business. - smart entrepreneurs engage professionals experienced in this section of the code to ensure compliance. Compared to traditional retirement plans, captives offer improved tax benefits, wealth accumulation and, asset protection wealth transfer, Keith L. LLC, a full service, in Keego Harbor financial consulting and planning firm specializing in high net worth individuals, business owners and medical professionals since 198For information on planning strategies, email info@ benefitsolutionsgroup. biz or visit www. benefitsolutionsgroup. biz. Mohn, CHFC, CLU, CAPP, CWPP - - financial consultant, charter member of, lecturer Wealth Preservation Institute, President Benefit Solutions, Wealth Protection Alliance Group.