Micro Captives: Building a Strong Foundation for Success

By Sandra Springer January 15th, 2017

Amy Lewis, of Captive Resources, LLC, discusses, in spite of continued close scrutiny from the IRS, the continued viability of legitimate micro-captives, and the considerations to ensure the structure succeeds.

Excerpt: Ongoing scrutiny by the Internal Revenue Service (IRS) around 831(b) micro-captive insurance companies and the potential misuse of these captives has caused some companies to step back for an analysis over whether a micro captive insurance company is the right fit for their risk management needs.

Given the recent activity around the potential abuse of these captives, now is a good time to review how to develop a strong foundation for success when forming or managing a micro-captive. A micro-captive that has been structured correctly can be an effective tool for successfully managing a company’s risk profile and supporting a business’s risk management needs.

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