BOE, LTD, or Key-Man for Small Biz Owner

[Justin Bilyj]

So looking more at BOE, they pay salaries of employees, would this be enough to cover his salary if hes a ccorp, i.e. owners are employees of the company, if he is disabled?
What if its not a ccorp, no dice for the boe to keep paying his income?

 

[djs]

I think you are solving the wrong problem, but its hard to tell from the limited information.

Does he want to maintain his income? Then the DI policy would be good.
Does he want to maintain his business (why?)? Then the BOE policy would be better, but would the business survive anyway?

The BOE protects the business, the DI protects him. You might need both, but he needs the DI policy.

What good does Keyman do him if he has no second side to it?

Dan

 

[Justin Bilyj]

What do you mean about second side?
Also, do you know the answer to my above boe question based upon business structure?

 

[djs]

Sorry, mental breakdown....
Doh!!! Somehow, I was into buy-sell.

Dan

 

[VolAgent]

So looking more at BOE, they pay salaries of employees, would this be enough to cover his salary if hes a ccorp, i.e. owners are employees of the company, if he is disabled?
What if its not a ccorp, no dice for the boe to keep paying his income?

BOE will not pay his salary. BOE WILL pay to hire someone to replace him. Often there are restrictions if it is a family member.

 

[moonlightandmargaritas]

An "executive bonus 162" policy would be owned by the individual and the same individual would be the beneficiary.

Huh? I think the individual might name a beneficiary, but being a beneficiary when you're dead kind of defeats the purpose...

Been some time since I worked in this market, and I might be rusty, but I recall that Sec. 162 works with "C" corps. "S" corps where it's a more than 2% shareholder - not so much.