How does a holding company receive money from there clients to invest?
A holding company invest in businesses and stocks. I'm trying to figure out how they receive money from investors, or other companies so the holding company can invest it.Is though the Internet and credit, ect. I would like to receive an answer and also more info on holding companies if possible. Thank you
Question answered by Mohammad
1. Holding companies get funds from their shareholders.
2. A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the United States, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.
3. For details, please read at:
How do you start a real estate holding company and a real estate development company, can I combine the 2?
I am 14 and when I get older I would like to start a real estate holding company LLC and a real estate development company LLC. How much money would I need to start one? With the real estate holding company do I get capital gains? Also I would like it to be publicly traded. So what is the best way to go about doing this?
Question answered by Jim Bob
Wow! what a great question from a 14 year old. a LLC (Limited Liability Company) is incorporated with the Attorney Generals office in the state it is established in. The best way to do that is to go to an Attorney. A holding company and a Development company may be combined into one, have different division or groups to do the different objectives, or even the same people.
You can never have too much money to start a company, it's the too little that matters. Your best bet is to save as much as possible, write up a business plan, go to friends and family for investment in the company before you start out and hope to have a minimum of $50,000 to $500,000 to start your company. Then you can go to a bank and borrow, usually 2 to 3 times that much more to make your first purchases.
Yes there are Capital gains even for companies to pay with investment properties.
When you are ready, have your board of directors vote to take your company public by registering with the Securities and Exchange commission, with the assistance of a Stock Brokerage Company.
What is the difference between a holding company and an enterprise?
We have several small businesses that we would like to put under either a holding company name or a enterprise. What is the difference between the two?
Question answered by Sandy
An enterprise can be any type of organisation - a sole proprietorship, a partnership or a corporation. If your enterprise is a corporation, and you arrange it such that it buys over the shares or equity of all the several small businesses, then your enterprise becomes the holding company (aka parent company) of all the other smaller companies.
How does a holding company work in the uk?
I am starting a new limited company in the uk, However there is two separate parts to this business which I like to keep completely separate, so I was wondering how does a holding company work, Would i first register the holding company and if yes under what type of business and then register the two other businesses under it? Also, how would i go ahead and register those two other businesses under the holding company. Thank you very much for your time
Question answered by Clive Reborn
I would have completely separate companies in order to keep my options open. You may in the future opt to create a group structure but as uncertainty normally surrounds businesses in their early days, it is better to remain flexible. One option is possibly to have only one company + trade yourself as a sole trader( no registration required but advise HMRC within the first year of trading). A company could be registered for VAT and deal with trade sales while you a as sole trader might not be registered.
If your turnover is less than £3.5m you will not have to appoint an auditor so you could prepare and file your own company accounts. If you have a group structure - holding company + subsidiaries, accounts preparation is harder and filing on-line CT600 forms with HMRC, a soul destroying job at the best, will become a nightmare.
Success in your new venture.
What is the purpose of a holding company?
What is the holding company and what is the purpose of it?
Obviously, its some kind of legal entity.
However, Im not sure exactly the reasons why they are set up. Many large publicly traded corps have hundreds of these.
Just curious why they are set up this way...Jurisdiction, legal, tax?
Whats the main reason? Im looking for more than some texbook definition...I want to understand the practical reasons certain companies use them, and the logic behind it.
Thanks for insight.
To the first answer..It still is not clear.
A company buys another...under what conditions would mgt form a holding company and when would they not.
Im a little slow on this...need it spelled out:(
Question answered by Ranto
You are right to think of jurisdiction, legal reasons and tax reasons -- all three contribute.
A holding company is a corporation that has partial or complete control over other companies.
There are several reasons why a company might want to do this -- mainly having to do with legal restrictions or limiting liability.
Limiting liabilit is an important feture. If a holding company owns two companies, then if one goes bankrupt, they have no call on the assets of the other firm.
You may notice that there are a lot of bank holding companies. This is due, in part, to the fact that different states have very different banking laws. Banks in each state are set up as separate companies to avoid conflicts. Banking laws have changed a lot since the 1980s. Prior to then, many states limited the number of banks that a company could have. Having a holding company got them around this.
Another reason for a holding company is to make it easier to have joint ventures.
How to set up a holding company in Singapore? What's the legal entity, the benefits of having one?
1. What is a holding company?
2. What is the benefits of having a holding company?
3. Does all the subsidiaries companies be Pte Ltd?
4. Does all the subsidiaries have related products / services?
Question answered by s
A holding company can be a parent company, just for holding subsidiary companies. Sometimes just to keep information about those companies hidden, other than that I don't know. That's about all I know, about the one I know about. Look it up on a search it gives wiki and other definitions.
If your company does something, Singapore would be good because of cheap labor.
No they do not always have related products or services.
What pays tax the company thats makes money or the holding company?
I am about to set up a company in the UK and i have plan to grow it quickly which i now i should not do but i am because that how i am. The thing is that all the company's will share the holding company names and then they will have specific name after them similar to virgin group. I have spoke HMRC they can't seem to help. So i do not what to pay double corporation tax which is bit of joke when star bucks pays jack shit but hey. So is there away for me to pay only one tax bill and it all to be centralized through the holding company.
I know this wrong way of going about this but i have to do it this way because i am planning to grow rapid into many different areas fast.
Question answered by BD
The trading companies pay tax on their profits. Each company will submit a profit and loss account and tax return based on its own trading activities.
The holding company will also pay tax on its profits - if it has any. Normally a holding company does not trade, all it does is hold the shares of other companies (hence it is called a holding company). As a shareholder, it will receive dividends from the companies it owns. Dividends paid from one UK company to another are not taxable. If that is its only "income" it will not have any tax to pay.
How do you open a holding company in Ontario, Canada?
I have just moved back from the US with my husband. We are both self employed and where about to set up our separate businesses when a friend told me to first set up a holding Company that the businesses would be opened under. I know nothing about holding companies and didn't know if individuals could start them or if it is even necessary. Any information would be greatly appreciated.
Question answered by John T
Go to a lawyer and they can get you set up with a corporation for about $700.
How could 5 unrelated investors create a holding company and avoid Personal Holding Company taxation?
I am trying to determine the best way for myself and 2-5 other investors to pool investments together to better diversify our portfolios. Currently, we are looking into creating a holding company as a LLC, but are attempting to avoid being taxed as a Personal Holdings Company. Other than individually investing in mutual funds, is there an approach to a small holding company that can assist us in this diversification and not result in being heavily taxed?
Question answered by kemperk
there is no such thing as "PHCT"
unless you are in the UK.
LLC is good. For an investor's holding firm IF YOU plan on being a public firm in 1-2 yrs, go for
sub S now, so you can be a C
can guide further [and I teach how to get over 50% with less than 5% risk]
Does a holding company only serve as financal backing to it`s subsidiarys?
I know a holding company is a entity that owns other businesses, however does the holding company only serve as the financial backing of its subsidiary? If so how does it differ from an investment company?
Question answered by mbrcatz
No, that's not the only purpose.
ANY company can be an investment company, if someone invests in it.
It's like asking what the difference is between apples, and wooden blocks.