Ancillary Benefit Of Owning A Captive Insurance Company – Efficient Removal Of Retained Earnings From A C Corp.
In our weekly articles we have discussed the tremendous business benefits of owning a small insurance company – specifically a Section 831 (b) captive insurance company. Four very common benefits are:
- To formally self-insure business risks with tax deductible dollars
- To protect assets
- To accumulate wealth and earn additional profits
- To more effectively transfer assets to one’s heirs
And, owning and operating a captive insurance company enables a business owner or owners to achieve all 4 benefits outlined above at the same time in one vehicle. Captive ownership also affords many ancillary benefits, including the efficient removal of earnings from a C Corporation.
The Challenge – Retained Earnings “Trapped” in a C Corp Continue Reading