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Tax Planning

The most money you'll pay in your life will be taxes.

We offer businesses an opportunity to legally reduce their taxes and use some of the strategies Fortune 500 companies are using to minimize taxes including taking advantage of a global platform. Whether that is using the codes in Puerto Rico, Isle of Man, Malta or the Canary Islands and there are a number of other jurisdictions we use to create a custom plan.

We also provide pre-immigration tax planning. Before a non-US person decides if they want to be a resident or a U.S. Citizen they need to examine the tax issues and determine if they would like to keep some of their estate or income outside US taxation.

One of the best solutions for a mid-sized to large company (revenues matter for qualifying) is to consider forming your own captive insurance company. Not only are there significant tax benefits but you can control your destiny from a possible future claim where your current insurance might not cover it or finds a way to deny the claim leaving the company or directors footing the bill. You never know how good your coverage is until you really need it and then find out they are calling your situation an exclusion.


Captive Insurance Company - what is it?

(Self-insuring for today's risks)

Question – if I can do what fortune 500 companies do to save taxes and insure against risk and it is affordable – why am I not doing it?

  • According to the 2015 Hiscox guide to employee lawsuits companies in California are at a 40% risk of employee lawsuits
  • A much unheard of option exists that allows a business to reduce risks and reap huge tax advantages by self-insuring.

The Law Office of James Burns and its Affiliates form Captive Insurance Companies and provide annual management of your company to keep it compliant and seamless with your current tax preparer. We are a one stop shop for everything you need.

  1. What Is A Captive Insurance Company?
    A Captive Insurance Company is a company established with the primary objective of insuring or reinsuring the risks arising from the operating business of its owners and to provide a broad range of risk management capabilities.
  2. Why Would A Business Use A Self Insurance Strategy?
    Owning your own insurance company gives your business the opportunity to retain favorable, i.e. profitable risks within the captive, and transfer the less favorable risks to the traditional insurance marketplace.A Captive Insurance Company is owned by your business, or by you personally, and allows for a more tailor-made policy that covers the exact risks of your business at a much lower cost than traditional third-party insurers.The captive premium expense is tax deductible as an “ordinary and necessary business expense.” In addition, the premiums collected by the captive are tax-exempt up to $1.2MM per year, per captive. Over time, as these premiums accumulate, they can be invested to generate additional income which can then be distributed back to the shareholder.

Common Business Sectors For Captive Include:

















Private Equity


Real Estate*

Energy Power


Food & Beverage




Heavy industry


High tech/Biotech




  • Captive insurance companies have been widespread in the US for over half a century.
  • Over 90% of Fortune 1000 companies utilize a captive insurance company.
  • New growth in small captive formations have consistently outpaced big captive growth since 2005.
  • 35% of captives formed write less than $1 million of annual premium, a/k/a small captive.
  • There are close to 80 domiciles (foreign countries and individual domestic states) offering licensure.

If you're in manufacturing the most hazardous risk affecting you and your business is the breakdown of the supply chain or delays.

Cyber-security is the new kid on the block exposing certain financial business to huge risk and liabilities as well as merchant account services.

Currently Terrorism Insurance is about to expire creating real concerns about premium rates skyrocketing. This would be a great time to consider your own captive insurance company to control your destiny of costs in case of a real claim. We are recommending using Puerto Rico to set up the captive since they have their own tax laws and tax authority. This takes your captive out of the current scrutiny many captives under 831b are experiencing due to a few misusing their captive insurance company.

CALL Today for a Discovery Call to see if this is a fit for your business

 We cannot describe all the benefits to each and every business in this brief summary and you should have some questions. If we printed all there is on this subject there would be volumes. Besides, fitting in the facts of each business is as customized as the tailor taking out the tape measure and fitting a suit to your distinct body.

Once it is determined there is a likely fit we can discuss formation cost and then proceed to have both an actuarial and a feasibility report done on your business. Once both of these are completed the math and the business strategy become clear and you'll easily recognize how this benefits you and your business going forward.

There are additional estate and asset protection planning benefits associated with having your own captive insurance company.

 Canary Islands Special Zone

ZEC is an onshore European Tax Incentive. The Corporate Tax Rate for a ZEC entity is just 4%, the lowest in Europe. Read More