How To Form An Llc Holding Company

Fund the holding company and transfer any existing assets from the operating company to the holding company.

How to form an llc holding company. Upcounsel accepts only the top 5 percent of. The holding company or llc is at the top and individual subsidiaries exist underneath it. Determine exactly which types of investments you wish to hold. Choose separate names for the holding and operating llcs. To set up this business structure you must form two separate llcs within your state.

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. As far as you run the holding and operating companies as different legal bodies the holding company won t be responsible for the debts of the operating company. How to form your companies. 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. Select a registered agent for each llc.

Form an initial investment strategy. The member or members choose a name and then file articles of organization with their state of choice for a fee. You should form an llc to limit your liability. If you need help with forming an llc holding company you can post your legal need on upcounsel s marketplace. For more specific information on how a holding company is taxed be sure to consult a professional with any questions.

You have to make each a separate entity but you can be the agent for both. Forming an llc is relatively simple. While you can file your llc in your state of residence you also have the option of filing a delaware llc or nevada llc. 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.

A series llc essentially allows a business to create a holding company structure without having to create separate llcs for each subsidiary. 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. Create and file articles of organization for each llc with the appropriate state agency. You can start your own investment holding company by forming a strategy and filing the proper paperwork. A series llc can establish under that umbrella an unlimited number of self contained cells.