Non-Controlled Foreign Corporation (NCFC)Controlled Foreign Corporation (CFC)Dealer-Owned Warranty Company (DOWC)

Non-Controlled Foreign Corporation (NCFC)

Be part of our dealer clients who have taken charge of maximizing their dealership’s revenue potential and investment future through our auto reinsurance programs. Signature Dealer Services offers Reinsurance Participation Programs that multiply high yielding returns. The participation programs that we offer provides a smart choice today that will help you meet your current needs so that you will be presented with greater choices in order to reach your long term goals. Whether you are searching for instant cash-flow or a long term investment strategy, Signature Dealer Services has the expertise with providing a wealth building frameworks and income development programs.

A Non-Controlled Foreign Corporation (NCFC) is a very straight forward.

There are two primary ways for a Non-Controlled Foreign Corporation (NCFC)to avoid being labeled as a Controlled Foreign Corporation (CFC). The first structure is a foreign person owning all of the voting stocks while a U.S. person does not own any voting shares.

The second structure allows multiple ownersto own no more than 10% of the value or voting shares of the NCFC. If a U.S. Shareholder surpasses ownership of more than 10% of the value or voting shares, the NCFC then becomes a CFC.

The most predominant NCFC structure of F&I products are off-shore reinsurance companies with various owners with no affiliation, but have voting power by owning voting stocks.The value of each shareholders stock reflects the production value of their business.

General expenses are allocated based on premium volume or consolidated evenly between participating shareholders. Investment income are allocated based on the average investable assets produced between all participating shareholders. Profits produced by a business accrue to the participating shareholder’s stock.

Let’s create a successful plan to maximize your dealership’s financial future today!

1

Control

A risk model that’s best suited for automotive dealerships who desire the highest yielding return on their long-term investment strategy.
2

Choices

Take charge of reinsuring major product lines with multiple owners for risk sharing and distribution
3

Dependability

A.M Best “A” rated insurance carrier coverage in the event your dealership is unable to perform its obligations
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What Should You Know About NCFC

A NCFC is not subject to Federal Income Tax if it does not do business in the U.S. Losses that surpass the value of the participating stock may be dispersed to other participating shareholders.  To alleviate the risk, funds are set aside in order to neutralize potential losses. Many NCFC will charge and allocate a risk free or combine the premium to generate funds for potential losses.
Shareholder statements are processed semi-annually or annually to show each participating shareholder the value of their stock. The ownership interest are under the jurisdiction of the U.S. Federal Income Tax Laws even if the entity is not in the jurisdiction of the Internal Revenue Code (IRC)

However, please be aware that the description of tax treatment is associated from feedbacks received from clients and should never be mistaken as professional tax advisement.

For those who are interested in being a dealer client, applicants should seek professional advisors to confirm regulatory tax treatments that can be imposed within their state.

Controlled Foreign Corporation (CFC)

Be part of our dealer clients who have taken charge of maximizing their dealership’s revenue potential and investment future through our auto reinsurance programs. Signature Dealer Services offers Reinsurance Participation Programs that multiply high yielding returns. The participation programs that we offer provides a smart choice today that will help you meet your current needs so that you will be presented with greater choices in order to reach your long term goals. Whether you are searching for instant cash-flow or a long term investment strategy, Signature Dealer Services has the expertise with a wealth building framework and income development programs.

A Controlled Foreign Corporation (CFC) is a very straight forward.

The corporation is not created or established in the U.S. or any state or the District of Columbia or under the law of the United States of America.

A U.S. Shareholder owns more than 50% of the value or the vote of the stock of any foreign corporation on any given day of the tax year is a  Controlled Foreign Corporation (CFC), according to the Internal Revenue Code (IRC).

Insurance companies that substitute 25% for 50% in the ownership test have special rules. A U.S. person who owns 10% or more of a company’s value or of the voting power of 10% or more of all stock in a foreign corporation is defined as a Shareholder.

An individual who is a citizen or resident of the U.S., U.S. Corporation, U.S. estates and trust, and U.S. partnership are categorized as a U.S. person.

Let’s create a successful plan to maximize your dealership’s financial future today!

1

Control

A risk model that’s best suited for automotive dealerships who desire more control overseeing their long-term investment strategy.
2

Choices

Take charge of any unearned reserves for your dealership today, so you have greater investment choices tomorrow
3

Dependability

A.M Best “A” rated insurance carrier coverage in the event your dealership is unable to perform its obligations
Get Started Today!

What Should You Know About CFC

Regarding F&I reinsurance arrangements, a CFC is referred as a Controlled Foreign Corporation that has made an election under the Internal Revenue Code (IRC) Section 953 (d) to be considered as a domestic company for the U.S. income tax purposes.
However, please be aware that the description of tax treatment is associated from feedbacks received from clients and should never be mistaken as professional tax advisement.

For those who are interested in being a dealer client, applicants should seek professional advisors to confirm regulatory tax treatments that can be imposed within their state.

Dealer-Owned Warranty Company (DOWC)

Be part of our dealer clients who have taken charge of maximizing their dealership’s revenue potential and investment future through our auto reinsurance programs. Signature Dealer Services offers Reinsurance Participation Programs that multiply high yielding returns. The participation programs that we offer provides a smart choice today that will help you meet your current needs so that you will be presented with greater choices in order to reach your long term goals. Whether you are searching for instant cash-flow or a long term investment strategy, Signature Dealer Services has the expertise with wealth building frameworks and income development programs.

Dealer-Owned Warranty Company (DOWC) is very straight forward.

The company is formed in a U.S. State that offers warranty or obligor contracts, but is not licensed as an insurance company. It is a separate legal entity from the dealership that is owned by the dealer and/or related parties/affiliated entities.

A DOWC is regulated the same way as AO programs, therefore it is not licensed as an insurance company but as a general business corporation. It pays income tax to both state and federal governments and has the same sales tax as AO programs.

The typical DOWC program is formed through a third party administrator (TPA) who provides all of the administrative services that are associated with the products the DOWC issues.

This includes the actual design and pricing of each product, processing premiums, adjudications of claims, and purchase of the CLIP that insures the performance of the DOWC. The TPA usually is responsible for the formation arrangements of the DOWC and handles all of the regulatory filings and approvals needed for the company to sell its products.

Let’s create a successful plan to maximize your dealership’s financial future today!

1

Control

A risk model that’s best suited for automotive dealerships who desire more control over their organizations investments.
2

Choices

Take charge of any unearned reserves for your dealership today, so you have greater investment choices tomorrow
3

Dependability

A.M Best “A” rated insurance carrier coverage in the event your dealership is unable to perform its obligations
Get Started Today!

What Should You Know About DOWC

There are more features of the DOWC program with respect to retail cost accounting that may also provide some unique tax planning opportunities.
However, please be aware that the description of tax treatment is associated from feedbacks received from clients and should never be mistaken as professional tax advisement.

For those who are interested in being a dealer client, applicants should seek professional advisors to confirm regulatory tax treatments that can be imposed within their state.