Captivating Thinking

Every year, a few self-proclaimed captive experts will write articles warning “if a financial advisor approaches you about setting up a captive insurance company, run”.  They don’t mean that you should necessarily run away from doing a captive, mind you, only that you should run from your financial advisor and toward (they never actually say but strongly imply) them.  If these talking heads are to be believed, any financial advisor approaching you about a captive insurance company has an ulterior motive:  Such advisors are just looking to sell you a tax scheme for their own selfish reasons.  By contrast, the talking heads spreading such warnings would have you believe that they care only about helping you manage your business risk and are otherwise completely unbiased.

Regrettably, rather than having the intended effect, the confusion and uncertainty that result from the misguided admonitions of the talking heads often scare

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