Testimonials

“The 831(b) election is a century-old law within the Internal Revenue Code permitting small insurance companies an exclusion from paying federal income taxes. For small and mid-market businesses, this can create large tax benefits. The business is permitted to deduct premiums from gross revenues as a deduction and then any premiums retained in the captive post claims are not taxable as income to the corporation.”

“In the many pages of that act is a section of law that provides a risk mitigation tool to small business owners that has become a powerful tool in helping small businesses stay in business and mitigate numerous intangible risks that insurance companies rarely contemplate and are reticent to insure. This is section 831(b) of the Internal Revenue Code, also known as the microcaptive insurance option.”

“One risk mitigation tool that can serve as a lifeline is an 831(b) captive, also known as micro captive insurance. However, due to an overreaching enforcement campaign from the IRS, this is not nearly as common as it should be. A micro captive offers business owners, including internet influencers, the opportunity to set aside funds and protect themselves from unique or unforeseen risks.”