The Insurance Hack for Lower Taxes!

June 25, 2025•1 min read

R. Kenner discusses risk reduction strategies and tax strategies for small business owners, focusing on the concept of captive insurance and the 831B structure. He explains how small business owners can manage their risks more effectively by creating their own insurance companies, which allows for greater control over premiums and potential tax deductions.

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The discussion emphasizes the importance of understanding the legal and structural requirements of captives, as well as the benefits they can provide in terms of risk management and financial planning.

Takeaways

• Risk reduction strategies are crucial for small business owners.

• Captive insurance allows businesses to manage their own risks.

• The 831B structure provides tax benefits for business owners.

• Understanding the legal requirements of captives is essential.

• Captives can help mitigate risks associated with unforeseen events like COVID-19.

• Customization of insurance policies is a key advantage of captives.

• Business owners should consider their long-term risk management needs.

• Tax deductions from premiums can significantly lower tax liabilities.

• Proper structure and real policies are necessary for compliance.

• Captives can cover a wide range of business risks.

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