The C Corporation may be for you if you plan dramatic massive growth for your business. It is a legally separate entity from it's shareholders and thus has perpetual life.
It does not dissolve on the death of a shareholder. It gets it's name from Sub-chapter C of the Internal Revenue Code. It enjoys liability protection from business creditors
In order to get this type of corporation started the principals of the company must file Articles Of Incorporation with the State in which it is located.
Life Insurance to fund Buy Sell Agreements or for Key Employee Life Insurance. Shop and compare Insurance Rates from 100's of the Top Carriers. Get the Best Quotes possible. Save up to 70%. Click Here For Free Quotes
The C Corporation pursues business on it's own behalf, owns property and can enter into contracts. It consists of shareholders and a board of directors which assigns the responsibilities of the principals, officers and employees of the company. Stock can be transferred from one stockholder to another at any time during the stockholders lifetime and even at his or her death.
Debt liability is limited to the assets of the company with no infringement whatsoever on the personal assets of the shareholders. The C Corporation pays Income Taxes on it's net income after allowable deductions.
Advantages Of The C Corporation
Disadvantages Of The C Corporation
Life Insurance Applications To The C Corporation
A buy-sell agreement can be set up by the company in order to ensure that the stock remains in the hands of the living stockholders. In the event of the death of one of the stockholders the corporation will buy the shares from the heirs of the deceased. The price is determined by the buy-sell agreement. As this agreement is binding it would be wise for the principals to review it each year.
The most efficient way to fund this agreement is through life insurance. The C Corporation buys an insurance policy on the life of each stockholder for the value of his or her stock. The corporation is the owner and beneficiary of the policy. Upon the stockholders death the proceeds are paid to the company. The company uses the money to buy the shares from the heirs. Alternatively the stockholders can own policies on the other stockholders and use them to fund the agreements.
term insurance is inexpensive insurance
10 year term,
a 20 year term or
a 30 year term
may be good to start off with.
Whole life insurance
may be even better as it lasts forever and it has cash values which
can be used to enhance the pension plan of the stockholder at his or
Other good alternatives are
variable universal life policies.
Key Man Life Insurance
Most companies have at least one employee on whose shoulders rests a tremendous amount of responsibility. The absence of this employee can be costly to the corporation. Buying life insurance on the life of such a person is known as key man, or key employee, life insurance. Upon the death of this employee the cash paid by the life insurance company would be used to offset any losses resulting from this employees death.
Get Key Employee Life Insurance or Life Insurance to fund Buy Sell Agreements. Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first. Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes
Home Business Life Insurance Sole Proprietorship Partnerships C Corporations S Corporations Limited Liability Companies How Much Life Insurance For Small Business 5 Year Term Life Insurance 10 Year term Life Insurance Policy 15 Year Term Life Insurance 20 Year Term Life Insurance 25 Year Term Life Insurance 30 Year Term Life Insurance Affordable Life Insurance Low Cost Life Insurance How Much Life Insurance Waiver Of Premium Accidental Death Benefit Long Term Care Insurance Long Term Disability Insurance Disability Insurance Quote Annuities Instant Term Life Insurance Quote Level Term Life Insurance Straight Life Insurance Incontestability Lapsed Life Insurance Policies Joint Term Life Insurance Permanent Life Insurance Options Professional Disability Insurance Return Of Premium Term Life S Corporations Selling A Life Insurance Policy Single Premium Life Insurance Sole Proprietorships Straight Life Insurance Term Insurance Term Insurance Quote
No Medical Exam Life Insurance. What is going on here? Is this new? The way people act one would think that this is an entirely new idea.
Consider online life insurance. Buying life insurance online can be quite a simple process especially if you know how much you want and what type.
There are many pages on this website on term insurance details and how it works. What I want to do on this page is give you a basic and general outline of this policy.
You may find it a valuable experience as well as enlightening if you took some time to get a term life insurance quote on your favorite term policy.
Key employee life insurance is really a necessity.