Apr 15, 2022
Looking to plan out your business more efficiently and minimize unforeseen risks? Clay Ogden comes on the show to talk about how you can do this, and essentially “insure” unpredictable obstacles/tragedies that may affect your business. This can be done through 831(b) insurance plants, which allow business owners to take excess profits/revenues. It can be up to 10-15% of your gross revenue; this money is set aside, and can be deferred for the future or invested if you don’t end up using it. Tune in to find out more about how you can stay prepared and protect your business.
-Clay Ogden is an expert in risk management and 831(b) insurance plans
-831(b) is a section of the tax code that allows a business owner to take excess profits/revenues out of their business and save it for unforeseen risks (i.e. business/supply chain interruptions)
-This allows business owners to protect themselves from unexpected issues
-They typically allow around 10-15% of gross revenues to be set aside, depending on the scenario
-Anything unused for claims purposes can be deferred for the future, invested, or qualified for the dividends
-The maximum that can be taken is $2.4 million annually