Business Succession & Profit Sharing

//Business Succession & Profit Sharing

Business Succession & Profit Sharing

Executive Bonus Plans for Business Owners

Tax Advantaged Plans for Key Employees – Starting with the Business Owner

Who are the “Key Employees” in a Business?

  • Owner(s)
  • Experienced Managers
  • Employees Who Are Critical to the Success of the Business and Would be Difficult to Replace

How Does the Business Owner Benefit from Executive Bonus Plans?

  • Allows the Owner(s) to Reap the Rewards of Success
  • Helps the Business to Attract and Retain Top People
  • Properly Structured Executive Bonus Plans are Tax Advantaged
    • Tax Free Growth
    • Tax Free Income / Withdrawals *
  • Executive Bonus Plans Can Be Aligned With Company Goals
    • A Vesting Schedule Can Be Used to Incentivize Key Employees to Stay With the Company
    • Executive Bonus Plans Can be Tied to Company and/or Individual Performance
    • Executive Bonus Plans Allow the Company to Provide Benefits that Are Similar to Incentive Stock Options at Large Public Companies
  • Executive Bonus Plans Are Flexible
    • Plans Can Be Structured Differently for Each Key Employee
    • Executive Bonus Plans are Not Subject to the Restrictions Found in 401(k) Plans

How Does the (Non-Owner) Employee Benefit from Executive Bonus Plans?

  • Bonus Potential – Key Employees Can Share in Company Profits
  • Tax Advantaged Retirement Plan – Provides the Employee a Company Funded Retirement Plan
    • Tax Free Growth
    • Tax Free Income / Withdrawals *

* Tax-Free Income is based on a properly structured and funded non(MEC), Equity Indexed Life Insurance Policy.  Utilizing Partial Surrenders and zero or low cost loans, while keeping the policy inforce.

*Tax-Free Income is based on a properly structured and funded policy. Utilizing Partial Surrenders and zero or low cost loans, while keeping the policy inforce.

2016-12-01T18:27:09+00:00