A Series LLC Captive Insurance Company* can provide small and mid-sized business owners the following benefits:
- Premiums paid to a captive may be 100% deductible under IRC 162 as an ordinary and necessary business expense.
- Premiums received by a captive maybe tax free if premiums received are under $1.2 Million and the captive elects to be taxed under IRC section 831(b).
- Potential for asset accumulation and estate planning opportunities.
- Captive assets are protected from the parent (business that established captive) company creditors
- Distributions paid out should be taxed at the long-term capital gains rate as qualifying dividends.
*Creation of the Captive Insurance Company subsidiary is arranged by an independent third party specialist.
To speak to one of our valued team members regarding a Captive Insurance Company, please call (800) 535-0944, or email our team by clicking here.
