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Captive Insurance Companies …
Big Tax Benefits for small businesses

Big business enjoys huge tax advantages by creating captive insurance companies. PC success can also use this powerful tool for wealth accumulation and risk management.

Keego Harbor, Michigan. May 11, 2007 – In 25 years of development of asset management plans for physicians and other entrepreneurs, Keith L. Mohn, CLU, ChFC, CAPP, CWPP has seen all the techniques financial planning. He helps PCs achieve their wealth accumulation and transfer goals with the "captive insurance company (CIC)."

"Captives are not for everyone," emphasizes Mohn. "But for PCs installing a certain profile, a CIC may be the 'Holy Grail' of the planning ".

Ideal candidates – successful owners / professionals with predictable annual profitability of $ 500,000 + – can deduct up $ 1.2 million per year, converting ordinary income into capital gains, create tax deductible funds for war against business disasters, self-insurance risks with pre-tax dollars, knowing that the funds are inaccessible to creditors of the companies or owners.

The CIC underwrites risks of companies owned the same owner (s) – risks associated with the practice or medical facility that is not easily or cheaply covered by commercial insurance.

Risks that may be the subject of a CIC:
• Administrative Actions
• Computers, Data Recovery
• Key Employees
• Employee / executive Professional Responsibility
• Business Income Loss
• Litigation costs
• Risk ecommerce
• Directors / Responsible
• Kidnapping / Ransom
• Sexual Harassment
• Income Tax compensation
• Deductibles / absence of coverage

Policies can be labeled "litigation expense only" the creation of a pre-tax war chest to fight lawsuits, while protecting assets against claims. "Dollar Premium" are moved out – away from creditors. Because premium payments are made "for value" is difficult for creditors to prove fraudulent transfer.

Advantages
• Better legal protection of reserves due to requirements to pay claims. Creditors are less likely to force judgments.

• When no longer useful, captives can be terminated, assets distribution of capital gains declared, taxes paid – providing optimum tax benefits.

• Captives formed under 831 (b) reporting have direct tax – a simple "S" corporation. Smart entrepreneurs engage professionals experienced in this section code to ensure compliance.

The CIC is a well structured planning tool for powerful business right. Compared with traditional retirement plans, captives offer greater tax benefits, asset protection, wealth accumulation and transfer of wealth,

Keith L. Mohn, CLU, ChFC, CAPP, CWPP – financial consultant, speaker, founding member of the Institute for the Preservation of wealth, wealth Protection Alliance, President of profits Solutions Group. LLC, in Keego Harbor, a full service financial consulting and planning company specializing in high net worth individuals net, business owners and medical professionals since 1983. To information strategy planning, info@benefitsolutionsgroup.biz e-mail or visit target = "_blank"> www.benefitsolutionsgroup.biz.

About the Author:

In 25 years of developing asset management plans for physicians and other entrepreneurs, Keith L. Mohn, CLU, CHFC, CAPP, CWPP has seen every financial planning technique. He helps PCs achieve their wealth accumulation and transfer goals with the “captive insurance company (CIC).”

Article Source: ArticlesBase.com – Big Tax Benefits for Smaller Businesses