Business Owner Strategies

Designing more efficient employee benefits and succession tools to protect business value and reward key players 

Tax Mitigation & Exit Planning Keep More of What You’ve Earned.
When it’s time to sell a business, investment property, or other appreciated assets, taxes can take away up to 40% of your hard-earned wealth. Our advanced tax mitigation strategies help you reduce or eliminate capital gains taxes, lower income tax liabilities, and turn your assets into predictable, lifelong income — all while protecting your legacy.

The Benefits of Advanced Planning

• Eliminate capital gains taxes on appreciated assets
   
• Reduce income taxes on business and W-2 earnings
   
• Convert a one-time sale into lifetime income
   
• Preserve more wealth for your family and causes you care about
   

Sell Without the Tax Hit
This strategy allows you to sell highly appreciated assets — such as real estate, stocks, or a business — without paying immediate capital gains taxes. Instead, the proceeds are reinvested inside the trust, creating a reliable income stream for life. At the end, the remainder goes to charity.

Benefits:

• Eliminate capital gains at sale
   
• Receive lifetime, predictable income
   
• Reinvest proceeds in a tax-efficient way
   
• Leave a charitable legacy
   

Give Now, Pass More to Your Heirs Later
This provides annual income to a charitable cause during your lifetime, while significantly reducing gift and estate taxes. At the end of the trust term, the remaining assets pass to your heirs at a reduced tax cost.

Benefits:

• Reduce or eliminate estate and gift taxes
   
• Support your favorite causes today
   
• Transfer more wealth to your family
   
• Maintain long-term control
   

Philanthropy + Wealth Control
This combines the flexibility of a business entity with the tax advantages of charitable planning. You can contribute assets, manage investments, and enjoy tax benefits while creating long-term impact.

Benefits:

• Blend philanthropy with wealth preservation
   
• Maintain investment control
   
• Flexible in how and when you give
   
• Protect wealth while supporting causes
   

Defer Taxes, Keep Control
This allows you to defer capital gains taxes when selling assets, while still maintaining control over how proceeds are invested. Instead of a one-time tax hit, you receive customized income streams over time.

Benefits:

• Defer capital gains taxes
   
• Retain control over investments
   
• Create a predictable income stream
   
• Transition out of ownership without the tax burden

Business owners face unique financial challenges—from protecting their business to building personal wealth and planning for succession. Implementing effective business owner strategies, such as an Indexed Universal Life (IUL) policy, can be a powerful tool that helps entrepreneurs address multiple problems with one cohesive approach.

Here’s how an IUL benefits business owners:

1. Tax-Advantaged Wealth Accumulation

Business owners often seek tax-advantaged wealth accumulation methods beyond traditional retirement plans. An IUL allows you to:

- Contribute flexible amounts (no IRS limits like a 401(k))

- Grow cash value tax-deferred

- Access funds tax-free through loans and withdrawals

This flexibility is especially beneficial for business owners with fluctuating income or those who have maxed out other retirement vehicles.

2. Key Person Insurance

Your business may rely heavily on you or another key employee. An IUL can serve as key person insurance to:

- Protect the business from financial loss if that individual passes away

- Cover the costs of recruiting and training a replacement

- Provide stability for employees, investors, and clients

The cash value can also be leveraged as a business asset when necessary.

3. Executive Bonus Plans

An IUL is often utilized in Executive Bonus Arrangements (Section 162 Plans), where the business pays the premium as a bonus to a key employee or owner:

- The premium is tax-deductible to the business

- The employee receives a tax-free death benefit

- The employee gains access to tax-advantaged cash value

This strategy helps attract, retain, and reward top talent without the complexity associated with a qualified plan.

4. Buy-Sell Agreement Funding

In a partnership or closely held business, a buy-sell agreement ensures a smooth ownership transition if an owner dies. An IUL can be used to:

- Fund the agreement with a tax-free death benefit

- Provide cash to surviving partners to buy out the deceased owner's share

- Avoid disruption to the business or disputes among heirs

5. Business Succession & Legacy Planning

An IUL assists business owners with estate planning by:

- Creating tax-free income during retirement

- Leaving a legacy for heirs or a charitable cause

- Ensuring the business continues with proper succession funding

6. Asset Protection

In many states, cash value in a life insurance policy is protected from creditors, providing business owners with much-needed financial security in case of lawsuits or financial setbacks.

Summary

By utilizing an IUL, business owners can:

- Accumulate tax-free retirement income

- Protect the business from key losses

- Attract and retain talent

- Fund buy-sell agreements

- Ensure business continuity and legacy

- Shield assets from creditors