Once a business is established the question changes, from how to grow revenue to how to keep what’s left. These four structures come up most often at that point.

1. Section 125 plan — do this first

Simply moving employee premium contributions to pre-tax cuts the company’s payroll tax and the employee’s income tax at the same time. It costs almost nothing to put in place and takes effect immediately, which is why it always comes first.

2. Executive bonus — holding onto key people

The company pays an employee’s personal life premium as a bonus. The business deducts it like any other compensation, and because the policy belongs to the individual, it reads as a real benefit. Service conditions can be built into the design.

3. Key person insurance — protecting the company side

This covers what happens to the business if an owner or a critical producer is suddenly gone. The company owns the policy and receives the proceeds, which fund the cost of replacing them and cover the revenue gap. Lenders sometimes require it.

4. Buy-sell agreement — essential with partners

If a partner dies and their share passes to a spouse, the survivors end up running the company with a new partner who has never run one. A buy-sell agreement fixes in advance who buys that share and at what price, and life insurance is the usual way to have the money ready.