The easiest way to demonstrate the advantages of a holding company are through examples. Setting up a holding company, and accompanying subsidiaries, is popular for investors in industries as diverse as real estate, trucking, finance, e-commerce and more.
It’s commonly understood the benefits of creating a Limited Liability Company or a Corporation. They are asset protection, lower taxes, increased professionalism and (sometimes) privacy.
Less understood are the reasons to create a holding company, or how to go about structuring your business in the most efficient manner. Just as a business entity provides benefits unavailable to a sole-proprietorship, so too does a holding company provide benefits unavailable to a single business entity.
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