Over the past 20 years OF Crematieverzekering many small businesses have begun to insure their own risks through a product called “Captive Insurance.” Small captives (also referred to as single-parent captives) are insurance companies established by the owners of closely held businesses looking to insure risks that are either too costly or too difficult to insure through the normal insurance marketplace. Brad Barros, an expert within the field of captive insurance, explains how “all captives are treated as corporations and must be managed during a method according to rules established with both the IRS and therefore the appropriate insurance regulator.” According to Barros, often single parent captives are owned by a trust, partnership or other structure established by the premium payer or his family. When properly designed and administered, a business can make tax-deductible premium payments to their related-party insurance firm . counting on circumstances, underwriting profits, if any, are often paid bent the owners as dividends, and profits from liquidation of the corporate could also be taxed at capital gains. Premium payers and their captives may garner tax benefits only the captive operates as a true insurance firm . Alternatively, advisers and business owners who use captives as estate […] read more