Can a Holding Company Be an LLC?

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 sam@mollaeilaw.com. 

Table of Content

Can a Holding Company be an LLC that has a Single Member?

If you are wondering, “Can a holding company be an LLC that has a single member?” The answer, again, is “Yes, it can.” 

In addition, an LLC holding company can be owned by a trust. This type of set-up offers additional asset protection and may be integrated into estate planning.

A holding company makes the management of separate business interests simpler. Holding companies may assume one of various names, such as investment, property, assets, real estate, and private holding companies.

To learn more about this type of business arrangement, you can speak to me or my legal staff anytime online. 

In fact, you can book a call to speak to us here: https:///mollaeilaw.com. We will be happy to help you understand how both a holding company and LLC work.

Can a Holding Company Be an LLC? Defining a Limited Liability Company

When you ask the question, “Can a holding company be an LLC?” you need to define an LLC to see how the 2 entities can be combined. 

A limited liability company, or LLC, is newer type of entity than the traditional corporation. The first state to allow this type of entity was Wyoming.

Now all 50 states in the union permit businesses to form LLCs. Each state has its own rules for forming an LLC. 

An LLC is more popular than a corporation because it is easier to manage and you have more flexibility when running the entity. 

Again, each state has its own laws about forming a corporation or LLC. However, the states that wish to attract the most business make their guidelines for creating LLCs or corporations more business-friendly. These states include Delaware, Wyoming, and Nevada, especially the state of Wyoming.

Can a Holding Company Be an LLC More Easily in Wyoming?

If you are wondering, “Can a holding company be an LLC more easily in Wyoming?” the answer, once more, is “Yes.” That is because Wyoming has statutes in place that protect single-member LLCs. 

This is important, when forming a holding company, as each subsidiary in a holding company technically has one member. That member is the holding company.

The Wyoming legislature has made sure that this type of protection is part of its LLC law so it cannot be invalidated. No other state offers this amenity, nor Wyoming’s low fees and public anonymity. 

Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start

Can a Holding Company Be an LLC and Enjoy Specific Benefits?

You may also want to know the answer to the following, “Can a holding company be an LLC and enjoy specific benefits?” 

The answer is a definite “Yes,” especially if you set the LLC up in Wyoming. Not only can setting up a holding company as an LLC to reduce your taxes, an LLC can also protect your holding company’s assets. 

By establishing an LLC holding company in Wyoming, you can enjoy complete anonymous ownership. Therefore, your name, address, and other contact details will stay private. While other states do disclose LLC owners, Wyoming will not. 

If this sounds confusing, contact me anytime to set up an appointment for a consultation. Email sam@mollaeilaw.com with your inquiries today.

If you file your LLC in Wyoming for a holding company, you will not have to file any tax returns. By shifting your income to the state of Wyoming, which does not have state taxes, you can significantly lower your yearly tax rate.

Also, when you place your assets into a holding company, it credit-proofs them. For example, if someone experiences a slip-and-fall at your rental property, the event will not jeopardize the property financially. Likewise, a contract dispute will not threaten your use of a patent.

These types of benefits make the set-up of a holding company as an LLC quite attractive. Contact me today to further discuss your options in this regard. 

Email sam@mollaeilaw.com now.

So, what are the benefits associated with a holding company?

Holding Company Benefits

The establishment of a holding company is often used to protect assets, structure income, limit liability, or lower or defer taxes. That is why holding companies are liked by real estate and small business owners alike.

It is also why a holding company is the ideal entity for an entrepreneur or small business person to establish, as it limits the liability for personal and business debts. This is because the personal obligations of operating businesses cannot be passed onto a holding company’s owner.

If real estate companies are operated under a holding company, the property that is involved in a lawsuit will only be affected. None of the other real estate properties will be impacted.

A holding company can also protect corporate assets, as it allows for the tax-free payment of dividends. That is because a holding company controls 80% or more of an operating company’s voting stock, thereby qualifying for tax-free dividends from the operating business.

Mollaei Legal Tip: By establishing a holding company, you can make a business transfer much easier. If you wish to include your holding company in a trust for estate planning purposes, you can make your “holdco,” a beneficiary. 

Also, by establishing an LLC and holding company, you add a double layer of protection to your personal assets. By establishing a holding company as an LLC in Wyoming, you receive a double layer of anonymity – the type of protection that ensures no one can ever come after your home or other personal assets.

Moreover, by establishing a holding company and making it an LLC, you have a better means of jump-starting a new company or offsetting the profits and losses of one portion of a business with the liabilities of another. 

Talk to me about making your holding company an LLC. Discussing your options in this regard can provide substantial benefits. 

Email sam@mollaeilaw.com anytime.

What Happens Next?

Do you still have questions? “Can a holding company be an LLC and benefit you? Let’s explore some of the advantages. 

Why not start the process by contacting me today? Email sam@mollaeilaw.com at a time that is convenient for you.

Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start