How To Form An Llc Holding Company
You can start your own investment holding company by forming a strategy and filing the proper paperwork.
How to form an llc holding company. To set up this business structure you must form two separate llcs within your state. The member or members choose a name and then file articles of organization with their state of choice for a fee. Choose separate names for the holding and operating llcs. You should form an llc to limit your liability. A series llc offers the benefits of a traditional llc with one significant difference.
Upcounsel accepts only the top 5 percent of. This structure is created at the time a business files its articles of organization and allows for the unlimited separation of business interests assets and operations into independent series. For more specific information on how a holding company is taxed be sure to consult a professional with any questions. All holding company and operating company assets must be kept separate to ensure your limited liability protection remains intact. The holding company or llc is at the top and individual subsidiaries exist underneath it.
You could also create an llc company for each business though this would require you to maintain separate accounting systems and divide up the expenses between each company. As you set up your holding company you will need to find a board of directors to manage the holding company and oversee the subsidiaries. Determine exactly which types of investments you wish to hold. If you need help with forming an llc holding company you can post your legal need on upcounsel s marketplace. A series llc essentially allows a business to create a holding company structure without having to create separate llcs for each subsidiary.
Create and file articles of organization for each llc with the appropriate state agency. How to form your companies. Form an initial investment strategy. Forming an llc is relatively simple. Select a registered agent for each llc.
If you have a business with a significant amount of assets then a holding company would have a true purpose and would be worth forming one to protect the assets. Starting a holding company as an llc or a corporation is a fairly painless task but you should get the help of an attorney to make sure you do it correctly. Generally speaking the structure of a holding company will look something like this. Fund the holding company and transfer any existing assets from the operating company to the holding company. The series llc was introduced in 1996 in the state of delaware.