Life is full of costs and it seems like they are always going up. Sometimes it’s easy to think, “I’ll worry about that later”, “I’ll pay that later”, or "We'll get to that next year." But it’s mid-November and there is a substantial cost that is urgent and looming. Successful business owners and their advisors have only a few weeks to address this very important cost: The Cost Of Waiting To Set-Up Their Own Captive Insurance Company. The cost of delaying the formation decision can cost you as much as $600,000 in lost tax savings!
Making the decision now to own one or more captive insurance companies provides this year significantly improves your financial stability and positions your firm strongly ahead of your competition. Businesses with a captive insurance company are better positioned for long term survival, benefit from a vastly improved risk management posture, gain greater control over their insurance and risk management programs and have the opportunity to significantly increase investment income and facilitate accelerated wealth accumulation by business owners (CLICK HERE to read more).
Why Is It Important Now?
Businesses with a calendar year fiscal ending on December 31 still have time to form a captive insurance company and pay tax deductible premiums to their captive insurance company in 2015.
We have received word from several U.S. captive domiciles that they will accept applications into early December and work overtime to finalize captive formation and licensing in 2015. Because captive domiciles compete with one another, many go the extra mile to help business owners enjoy the benefits of owning their own insurance company.
If you are considering forming a captive insurance company in 2015, it’s not too late. However, the window is closing quickly, so, reach out to us as soon as possible!
What Is The Cost Of Waiting?
The cost of waiting to form a captive insurance company in 2015 is as high as $600,000. When formed appropriately a legitimate captive insurance company can utilize 831(b) tax election allowing for underwriting profits (on premiums up to $1.2M) to be taxed at 0%. Taxes paid to the IRS are gone forever, leaving businesses and their owners poorer, weaker and less prepared for risk and uncertainty.
Contact us today to discuss the process and benefits that captive insurance company ownership can provide to your firm!
About Assurance Partners:
As one of the largest providers of risk management services in the Midwest, we specialize in partnering with strategic advisors and their clients to help them guide them through the process of determining risks that are unique to their organizations. We then translate those risks into a legitimate insurance program allowing them to obtain the protection and financial benefits that are unavailable in the traditional insurance marketplace, all while strengthening the advisors’ value and providing their clients opportunities for significant wealth growth and asset protection.
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