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In this video, we're going to be talking about holding companies - what they are and why you may benefit from having them in your small business structure.
A holding company is a little bit different than your typical operating company. In a holding company, it's not selling anything - they're not taking any revenue, it doesn't have any expenses or payroll. It's not really a business in that sense of the word.
Instead what a holding company does is that it holds assets for tax reasons and for liability reasons.
Here are the 4 main reasons you might benefit from using a holding company;
1) Asset Protection
2) Eligibility of the Lifetime Capital Gains Exemption
3) Investment Vehicle
4) Timing of Dividend Payments
If you like this video please share it with someone or post the link on social media. Thanks for watching!
#SteveParr #ParrBusinessLaw
