What if you could utilize tax-savings strategies to pay less tax and put more money back into the corporate coffers?
When it comes to paying taxes, business owners are hit hard. Overpaying taxes can reduce operating cash flow and even take a big chunk out of profits.
One not so well-known, tax-savings strategy wealthy business owners and even the big banks have been using for decades is corporate-owned participating whole life insurance (also known as dividend-paying whole life insurance).
Corporate-owned participating whole life insurance, a policy where a company is listed as the beneficiary, is really an alternative asset class that doesn’t just provide your company or corporation with a tax-free death benefit, but also features a cash value that provides your business with accessible, liquid equity year over year through guaranteed returns and potential dividends.
You can leverage the equity in your policy as a source of business financing through the withdrawal of a policy loan without creating a taxable event and getting added to your company’s gross revenue. The cash value of a corporate-owned participating whole life insurance policy is also not taxed as a capital gain like other savings and investment products. This provides you, as a business owner, a tax-sheltered vehicle to store retained earnings while continuing to grow your money un-disrupted.
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