Non-Controlled Foreign Corporations (NCFC)
| Non-Controlled Foreign Corporations
(NCFCs) transact all business off-shore and are
not subject to U.S. tax codes.
The funds are held and invested outside of the
U.S. In the case of NCFCs you are a stockholder
rather than a single Owner, as in the case of
the CFC. No U.S. stockholder can control more
than 9.9% of the stock in a NCFC or control more
than 25% of the premium funds. Titan Dealer
Services recommends an NCFC structure that
will provide a "firewall" between shareholders
relative to risk exposure.
NCFC funds are subject to Federal Excise tax.
If the funds are brought back into the US they
are also subject to be taxed as dividends or capital
gains. Formation costs are similar to CFCs (about
$5000). However, the procedures for formation
with a NCFC are significantly less complicated
and quicker than a CFC filing. As with CFCs, the
corporation realizes all underwriting profits
and investment income. The underwriting profits
are accrued after all claims are paid and the
contracted coverages expire.
Dealer Owned 634
Titan Dealer Services specializes in establishing
and managing Dealer Owned Warranty Companies (634
Companies). This highly specialized and regulated
product structure provides the dealer with maximum
return on this very important F&I product.
Some of the advantages of a 634 company are:
- Privately held fully controlled ownership
- Custom design of coverage
- 100% control ALL premium dollars
- No premium tax
- Higher returns
Contact Titan Dealer Services for more
in-depth information on Dealer Owned 634 Companies.