Businesses can avail themselves of more options for building wealth and lowering taxes such as: Retirement Plans, Private Insurance Companies, Risk and Insurance Management, and Credit Management, as well as Tax, Estate and Succession Planning.
Private Insurance Company (PIC) benefits and cost should be evaluated by most profitable privately owned businesses or partnerships. PICs allow a business to buy insurance coverage from the PIC that the business or business owners own, pay premiums and receive insurance. Ownership of the PIC allows for premiums that are not used to cover claims or expenses, to build inside the PIC. This structure may be able to provide your business with insurance, tax and wealth building benefits.
Most employer-sponsored plans today are established as “defined contribution” whether a profit share plan or a 401K, plans whereby an employee contributes a percentage of his earnings into an account that will accumulate until retirement. As a qualified plan, the contributions are deductible from the employee’s current income or if funded by the company as a company expense.