A well managed captive insurance company can make a large profit. You can purchase your insurance at wholesale price, keep part of the risk yourself with the profit free of income taxes.
My video, Everything You Need to Know About Captive Insurance Companies, is an entertaining and information video of my live seminar for the California Society of CPAs. Made with insurance attorney, Jeff Moffat, the video explains the legal, financial and tax advantages of a captive insurance company.
A captive insurance company is owned by you. Besides insuring you typical business risk, it insures high risk risks such a sexual harassment, employee torts, loss of income from catastrophe such a storms, tornados, huuricanes, earthquakes and fire (these last two are important to the Californa business).
Captives do not pay income tax when their insurance premium are less than $2.4 million a year. If you keep the insurance premiums below $500,000, investment income is tax free, also. However, do not see a captive insurance company as a "tax shelter" by paying excessiverly high premiums for risks that are very unlikely.
My video was filmed during our California Society of CPA's seminar. The video is full of candid questions which are quite funny. Here you will learn how to save taxes offshore with your captive insurance. You can buy an international tax book, but it will never educate you as well as this video.
You can buy the DVD or watch instantly Everything You Need to Know About Captive Insurance, at Amazon's. Buy or watch instantly on this link.