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.

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

How Do You Know When You Can Retire?

Retirement isn’t just about reaching a certain age—it’s about knowing your finances can support the life you want. Learn the key questions to ask before making the transition. How Do You Know When You Can Retire? For many people, retirement is one of life’s biggest milestones. ...

<p>The post How Do You Know When You Can Retire? first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Inherited IRAs: What Families Need to Know When a Spouse or Adult Child Inherits a Retirement Account

Understanding the rules for inherited IRAs is essential to avoiding costly mistakes. Learn the key differences between spouse and non-spouse beneficiaries, required distributions, and important planning considerations. An Individual Retirement Account (IRA) is often one of the ...

<p>The post Inherited IRAs: What Families Need to Know When a Spouse or Adult Child Inherits a Retirement Account first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Mid-Year Planning Checklist for Business Owners and High-Net-Worth Families: Estate, Tax & Financial Strategies to Review Before Year-End

Mid-year is the ideal time for business owners and high-net-worth families to review estate plans, tax strategies, retirement planning, and wealth transfer opportunities before year-end. As the calendar reaches its midpoint, many business owners and affluent families are focused on growing their businesses, managing investments, and enjoying the summer months. However, mid-year is also ...

<p>The post Mid-Year Planning Checklist for Business Owners and High-Net-Worth Families: Estate, Tax & Financial Strategies to Review Before Year-End first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>