LLC by use
A Holding Company LLC
A holding company is an LLC whose only job is to own things: membership interests in other companies, real estate, equipment, intellectual property. It does not sell to customers or sign leases with tenants. The operating businesses underneath it do that, and they carry the day-to-day risk.
The structure separates what the business owns from what the business does. The state filing for a holding company is an ordinary LLC filing; what makes it a holding company is what it goes on to own and the fact that it keeps its hands clean of operations.
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Pick the state, answer a few questions, and we prepare and submit the filing. Every cost is shown before you pay.
Start My LLCWhy an LLC for This
Assets sit above the risk
If an operating company is sued, the claim is against that company and what it owns. Valuable assets held by the parent and leased or licensed down to the operating company are not the operating company's property.
One owner of record for many companies
The holding company is the member of each subsidiary, so ownership changes at the top happen once instead of in every company's records. Bringing in an investor at the parent level gives them a share of everything.
A clean place for the money to collect
Profits distribute up to the parent, which holds reserves and decides where to reinvest. Lenders and buyers find the structure easy to read.
What the Application Asks You to Decide
- Which state
- A holding company that owns only membership interests and does no business of its own has real freedom here, which is why Wyoming (no state income tax, low annual fee, members not listed publicly) and Delaware (deep case law, familiar to investors) are the usual picks. The operating companies still form or register where they actually do business.
- Name
- Holdings, Group, Capital or Ventures after the family or brand name are typical and rarely conflict. The state applies the same distinguishability test as for any LLC.
- Management
- Holding companies are usually manager-managed, with the founder as manager, so that adding passive members later does not hand them control.
- Registered agent
- Required in the formation state. A Wyoming or Delaware holding company owned by someone who lives elsewhere needs a registered agent service there.
After the State Approves It
- Form or acquire the subsidiaries and record the holding company as their member in each operating agreement.
- Keep separate bank accounts and books for the parent and each subsidiary. Mixed accounts are the fastest way to lose the separation.
- Document the transactions between them: leases, licences, management fees, loans. A parent that just takes money from a subsidiary without paperwork looks like one business, not two.
- Calendar every company's annual report and, for Delaware, the annual LLC tax.
General information about how LLCs are commonly used, not legal, tax or investment advice. Whether an LLC, and which structure, fits your situation is a question for an attorney or accountant who knows your facts.
File in the States Owners Pick Most
- WyomingFile in Wyoming
- DelawareFile in Delaware
- TexasFile in Texas
- FloridaFile in Florida
- NevadaFile in Nevada
- New MexicoFile in New Mexico
Every state and DC is available in the application. Each state page shows that state's fee, filing portal and typical processing.
Questions
Can the holding company be in a different state from the businesses it owns?+
Yes. That is the common arrangement: a Wyoming or Delaware parent owning Texas or Florida operating companies. The parent generally does not need to register in the subsidiaries' states if it only owns them and does not itself do business there, though that line is worth confirming with counsel.
Is a holding company worth it for one small business?+
Often not. It is a second company with its own fees and reports, and the benefit comes from separating assets from operations or holding several businesses. One operating LLC with good insurance is usually the right start, and the parent can be added later.
Does the holding company need its own bank account and tax ID?+
Yes to both, for the separation to mean anything. The company gets its own federal tax number from the IRS after the state approves it.
What does the state application ask for?+
Company name, state, mailing address, the manager or members and the registered agent. Nothing about what the company will own; that happens after formation.
How fast is the filing submitted?+
On a standard order your filing goes to the state within 3 business days. Choose same-day submission and an order placed before 2 PM Eastern on a business day goes in that day. The state's own review time comes after that and varies by state.
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One short application. State filing & processing itemized before you pay.
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