831(b) Captive Insurance

Structural Engineering • Building Strong Financial Foundations

Create your own insurance company to insure legitimate business risks while building tax-advantaged wealth. The 831(b) election allows small insurance companies to be taxed only on investment income, not underwriting profit.

Clients typically save on avg.

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How It Works

A Simple, Structured Approach
to Business Success

We follow a clear and collaborative consulting process designed to understand your business, identify opportunities, and deliver strategies that create real, measurable results.

01

Form a licensed insurance company (typically in a captive-friendly domicile)

02

Identify legitimate, insurable business risks not covered by commercial insurance

03

Pay tax-deductible premiums from your operating company to your captive

04

Captive invests premiums and pays claims as they arise

05

Underwriting profit accumulates tax-free under 831(b) election

06

Access funds through dividends, loans, or liquidation

Ideal Client

Business owners with $500K+ annual income, legitimate insurable risks, and long-term wealth building goals

Typical Results

Year 1: $45K-$130K tax savings.
10-Year: $1M-$3M+ wealth accumulation

Investment

$15,000-$25,000 setup + $150,000-$2,900,000 annual premiums

831(b) captives must insure legitimate business risks with actuarially determined premiums. The IRS scrutinizes captives lacking economic substance. All structures must be properly implemented by qualified professionals.