Unlocking Your Business's Wealth Potential
Building Prosperity as a Small Business Owner
Protecting Wealth
When a business is young, we’re often counting on loans to get off the ground. Protection at this early stage with the right set up of term life and critical illness insurance policies offer an affordable safety net to safeguard your most important assets - the business and the owner/operator.
As the business grows and cashflow is healthier, we can explore sophisticated strategies for permanent insurance. These take advantage of corporate paid premiums (at reduced tax rate), lowering individual costs, maximizing benefits to both business and owner, facilitating cash for business opportunities/retirement enhancements, and tax-free wealth transfer to individuals.
Building Wealth
Corporations pay substantially lower tax on revenue, leaving more money to run the business or to invest. Growth on the investments, however, are subject to a much higher tax. Accumulating wealth inside an Opco or Holdco requires much more consideration given the potential impact to the Small Business Deduction limit and the different tax treatments for various investments. Products and Strategies worth looking at include Corporate Class Mutual funds, utilizing Capital Dividend Account, and insurance strategies like corporate insured retirement plan, immediate financing strategy and shared-dollar critical illness.