Paying too much tax can be a destructive business expense. What if you could use 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 hard hit. Overpaying taxes can reduce your operating cash flow and also eat up a big chunk of your profits.
One of the not so well-know tax-savings strategy wealth business owners and even the big banks have been using for decades is corporate-owned, dividend-paying whole life insurance. Corporate-owned, dividend-paying whole life insurance, a policy where a company is listed as the beneficiary, is 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 undisrupted.
Watch the following video to learn more about other tax-savings strategies you can use as a business owner to pay less tax and redirect your money back into your business.
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