Fast Facts on Holding Companies: Part 2

If you tuned into yesterday’s post, you saw the basic information about how holding companies work and the general situations where they make sense for either an individual or a corporation. Today, we’re going into a little more detail about holding companies.

Many large holding companies will put the entity receiving income from subsidiaries in a country with a low income tax rate. One such example is the Isle of Man. This is a complicated process and should be handled by an asset protection specialist who can advise you about the benefits of locating the company in specific places. 

Transferring assets to others can be quite simple using a holding company. Instead of issuing stock certificates out to many separate companies, there is only one certificate that comes from the actual holding company.