A dealer-owned warranty company is a domestic C-corporation formed to allow Dealers to own their program and remain in complete control. With no premium limitations and low fees, dealer-owned warranty companies offer benefits, unlike any other reinsurance structure. Forming a DOWC allows the Dealer to control underwriting profits and direct the investment choices. Additionally, based on the US tax codes, DOWC offers Dealers different tax benefits when compared to a standard controlled-foreign corporation (CFC). Finally, the Dealer has product customization options made available since they now own the warranty company.