Holding companies

Why would you need millions of dollars? Just start a company and let that company also start a company and done.

>>1564791
Wouldnt you need money for the second company to actually do something?

>>1564797
You don't need to do anything. It's just a legal structure.

>>1564800
My knowledge of holdings might be wrong then. How do they make money?

>>1564895
by having their daughter companies pay out their profits as dividends.

a true holding is not commercially active itself and does not generate any additional profits.

you use them to consolidate profits and losses across different companies, to provide a more attractive package for investors or to excert control in an easy way.

>>1564900
Pretty much what i thought.

OP rephrase: How does anon1 go about starting a holding, without the assets to buy stakes in other companies or the assets to start its own companies?

>>1564911
You just need to register two companies and have one be the shareholder of the second

there's no point to it but if you want a holding company for whatever reason, you would then have one

>>1564914
So basically unless you already have money to invest, theres no point?

>>1564921
no, it's just that your question is meaningless

I'm not sure what you think a holding company is or does, or why you'd want one.

>>1564921
Why would you want one if you don't have the means to create or buy a profitable company?
What do you think a holding company is for?

isn't it for the sake of being taxed at the corporate rate as an individual investor?

>>1565410
Capital gains rate (taxes that an individual investor would pay) is roughly 20% in the US currently. The corporate tax rate however, is currently averaged at roughly 35% in the US. The only benefit this would present would be a complex use of tax shelters for people in upper tax brackets.