Every year, hundreds (maybe thousands) of business owners that would benefit immensely from the risk management, asset protection and tax saving benefits of owning their own captive insurance company are frightened away by advisors or so-called experts who suggest that, “captives are an audit target.”
Myth # 10 is characterized by both injustice and disservice.
Let’s start with injustice.
As your business or clients review 2014, estimate 2014 tax liabilities, and enter the planning season for 2015, now is the right time to consider a captive insurance company.
Sean King, JD, CPA, MAcc, Principal and In-House Counsel of CIC Services, LLC has recently developed an educational video explaining the powerful benefits of Enterprise Risk Management (ERM) utilizing a Captive Insurance Company (CIC) for small and mid-size businesses.
Sean explains how small and mid-size businesses can implement the same risk management, tax saving and wealth accumulation strategies employed by most Fortune 1000 companies.
To watch Sean’s video presentation, CLICK HERE.
Under the right circumstances, business owners can often increase their success, profitability and asset protection by starting or acquiring a second business that serves their primary business. This is often described as vertical integration, and it is often effective because a supplier or service provider is already making a profit serving the parent company.
Consider a successful business owner that chooses to stop leasing a facility in favor of purchasing a facility inside a new company owned by the business owner. In this situation, the business owner can now earn a profit on two companies and can
It appears the same old song and dance was trotted out at the Vermont Captive Insurance Association conference this Summer. The “Hot Topic” was Internal Revenue Service (IRS) scrutiny of “micro-captives,” a misnomer for small insurance companies typically utilized by small and mid-sized businesses. Small captive insurance companies are largely misunderstood by the captive managers and attorneys who thrived when large corporations were busy setting up and operating their own captive insurance companies.