Expert Tax Guidance for Captive Insurance
Navigate the tax code 831(b) with confidence and clarity.
Expert Tax Guidance for Captive Insurance
Navigate the tax code 831(b) with confidence and clarity.
Your Trusted Partner for Captive Insurance
Expertise in Tax Code 831(b)
Our team of leading tax experts provides in-depth knowledge to help businesses understand the benefits and potential drawbacks of captive insurance.
831(b) Is a tax code section that makes creating an insurance company for your business operations legal. The insurance company covers liabilities that are "uninsurable" through conventional insurance companies.
How to take advantage of the tax code section 831(b):
Advantages of working with a captive insurance administrative company:
1) Legitimize the company as an insurance company according to the tax code section 831(b)
2) Legitimize the transactions and insurance payments
3) Assistance with loans and insurance payouts from the captive insurance company
4) Assurance of correct bookkeeping, contract compliance
5) Audit guarantees for the captive insurance structure and transactions
Captive insurance allows companies to insure with pre-taxed earnings
IE Traditional Method:
$1,000,000 set aside to insure
37% tax rate
$370,000 tax (federal only)
$630,000 available to self-insure
IE Captive Insurance Method:
$1,000,000 set aside to insure
11% Estimated administrative fees
$110,000 administrative fees
$890,000 available to self-insure
