A holding company is a company that owns other companies itself. The holding company itself doesn't conduct business, but it owns companies that in turn conduct their own business. Heres a quick guide on how to create a holding company with Doola!
One technique we see quite often is a Wyoming LLC is set up as a holding company first. Because a holding company is not engaged in operations, it's a great choice to form it in a state like Wyoming, with its relatively low annual fees (to help save some 💰) and great privacy protection 🔒. The formation is done the same way any other entity would be set up with the Wyoming Secretary of State. Once that is set up, you can form your operations companies or subsidiary holding companies with the holding company (WY LLC) as the owner. This is one technique, and you may want to discuss with an attorney about other techniques for setting up holding companies and operations or subsidiaries :)
Let's finish with another example. Say you have a company that has already been formed in India or in Europe. What you can do is create a Wyoming LLC and have the company be the member of the LLC. This means that the "owner" or "member" of the LLC is a company.
We wrote a full guide on how to create a Wyoming LLC here and you should definitely check it out...
But we get it. You're a busy founder and you should be focusing on what you do best: talking to customers, building product, and growing your business 💸
You can create an LLC in a plethora of ways, but an easy way we recommend is using Doola😃. Instead of filing all your paperwork yourself, we will handle all the paperwork, and you can focus on growing your business 🚀�
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