Consolidated versus consolidating financials
If you are eligible for PSLF (meaning you are employed by a non-profit throughout and after your training) you’ll want to take advantage of that with as much of your debt as possible.
The risk management benefits of these captives were primary, but their tax advantages were also important.
A properly structured and managed captive insurance company could provide the following tax and nontax benefits: Since captives became accepted in the United States, a number of types have evolved. 531 (1941), which stated that insurance must include elements of risk shifting and risk distribution.
These include “pure captives,” where the insurance company insures the risks of one group of related entities; “association captives,” where the captive insurance company covers the risks of the members of a particular association; and “agency captives,” where the captive is owned and operated by one or more insurance agents to insure the risks of their clients. Besides obtaining an insurance license from a state or a foreign jurisdiction, the captive must provide insurance to the operating company or its affiliates. To meet the risk-shifting requirement, the operating company must show that it has transferred specific risks to the insurance company in exchange for a reasonable premium.
For many years, large corporations in this country have enjoyed many benefits from operating their own captive insurance companies.
Most were established to provide coverage where insurance was unavailable or unreasonably priced.Because the benefits of “pure captives” are much more significant, this article is limited to discussing that type of entity (see the sidebar “Case Study” for an example of situations in which it may be advantageous for a small business to set up a captive insurance company). In Risk distribution occurs when particular risks are combined in a pool with other, independently insured risks. 2002-75 the IRS stated that it would begin to issue private letter rulings on specific companies’ risk distribution and risk shifting and whether the captives are true insurance companies.