Benjamin Franklin said, “nothing is certain except death and taxes.”
True. But there are often great ways to slash your tax bill (as readers of this publication know!). And life insurance can help survivors, even though it won’t do much good for you.
So… what about having your S corporation buy life insurance? Is this a good idea?
Sometimes it is a great idea. But sometimes it’s a huge waste of money.
You’ll learn how to decide what’s right for your situation when you read my new article titled Tax Tips: Should Your S Corporation Buy Life Insurance?
Three ways our fact-filled article can help you:
- You’ll learn what multiple owners of an S corporation should do. One thing’s for sure. When you have multiple owners of an S corporation you need to have a plan for what happens when one of the owners dies. Without an agreement, the deceased owner’s shares can fall to his or her heirs and you may have some unwanted business partners to deal with! Luckily there’s a terrific double-win strategy that will benefit the business and the deceased’s heirs. We’ll tell you what it is when you read the full article.
- We’ll explain how to avoid the taxable income trap. Tax law usually excludes life insurance proceeds from taxable income, but special rules apply to employer-owned life insurance policies. And understanding them and avoiding pitfalls can save you a lot of money. You’ll get all the details when you read the full article.
- We’ll explain what a single-owned S corporation should do. If you’re the only owner of your S corporation, you don’t need the corporation to buy insurance. But you may need life insurance to help your family close down the business. That’s when a properly structured life insurance trust can come in handy as we’ll explain when you read the full article.