Some people have asked me, “Can a holding company be an LLC?” The answer is, “Yes.” In fact, it is smart to make a holding company an LLC, as doing so protects it from disputes that lead to lawsuits or confrontations with creditors.
To better understand why a holding company can be an LLC, we need to give a definition to a holding company or entity.
A holding company is an entity that owns other companies, called subsidiaries. It may also own assets. Some of the assets may include equipment, real estate, or intellectual property.
Therefore, a holding company does not engage in a business of its own.
Instead, the subsidiaries, if involved in risky operations, rely on an LLC to keep them from being sued or falling prey to creditors.
You can learn more about how a holding company works by contacting me anytime. Email email@example.com.
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