Financial Information

Financing Your Business For many growing companies, a large percentage of working capital is tied up in accounts receivable. Some businesses that extend credit have as much as 20 percent of their annual sales outstanding. Of course, receivables help to grow your company's balance sheet but they're not much use when you need money.
One way to get a quick infusion of cash is to turn to a little-known service called "factoring." With this option, your company sells its accounts receivable to a bank or financing firm and it assumes the risk of collection.

Captive Insurance Companies - Good for Business and Saves Taxes
$1.2 Million Deduction

Business Owners (or affiliated groups of individuals such as Professional practices and self-employed) can take advantage of section 831(b) of the Internal Revenue Code. The Code permits formation of a private insurance company known as a captive insurance company. Members of this group can take a Section 162 business tax deduction against ordinary income up to $1,200,000 per year in insurance premiums paid to the captive insurance company.

Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005
Email: Ron@TaxEsq.com

© Copyright 1996-2008 Ronald J. Cappuccio, J.D., LL.M.(Tax) All Rights Reserved