Fast Facts on Holding Companies: Part 1

June 29, 2015

If you’ve been wondering about whether a holding company could benefit you, read on through this first part of a two-part post. A holding company is a special entity equipped to hold investments, serving as a conduit through which the company controls and enables the underlying businesses. shutterstock_209711911

It can be used for both individuals and corporations. From the individual perspective, it can be used as an investment vehicle. For corporations, a holding company can benefit a risk-management strategy. The key benefit of this structure is that it leverages money and has the ability to make a small investment hold control over a much bigger portfolio.

As an example, a holding company might be used to invest $1 million as 33% holding share in order to finance a $6 million apartment building. Outside investors would contribute $2 million and the other $3 million is financed through a bank. This means that a $6 million asset has been created from a $1 million investment, offering tremendous leverage. Creating a series of distinct subsidiaries (known as silos), allows for others to remain intact even if one fails. Contact us today to learn more about holding companies- we’re here to help you determine if this is a great opportunity for your business or individual needs. Reach out to info@lawesq.net.

 


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

2026 Market Outlook: Navigating Noise with Strategic Clarity

As political and economic noise increases in 2026, investors can stay grounded by focusing on earnings, AI productivity, and tax advantages. Discover key strategies from ...

<p>The post 2026 Market Outlook: Navigating Noise with Strategic Clarity first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Are You Ready for Tax Season? Smart Strategies to Stay Ahead in 2026

Tax season is here—are you prepared? Discover key strategies for high earners, business owners, and legacy-minded families to reduce stress, optimize returns, and align with ...

<p>The post Are You Ready for Tax Season? Smart Strategies to Stay Ahead in 2026 first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

New Year, Smarter You: Resolutions That Build Wealth and Protect Your Legacy in 2026

Turn your New Year’s resolutions into action. Discover how to align tax, wealth, and legacy planning with your goals for 2026—and build a future worth ...

<p>The post New Year, Smarter You: Resolutions That Build Wealth and Protect Your Legacy in 2026 first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>