Holding Company

By IncNow | Published October 19, 2013

An asset-holding company with a virtual office in the State of Delaware with the intent to create enough contacts to a geographic location to give the state jurisdiction over the assets in Delaware to avoid taxes in other locations where a company is doing business.
2. Sometimes a holding company is merely a reference to a company that holds passive assets, without conducting other business activities. For example, this is used often to separate active businesses from passive activities. For example, a restaurant that uses a holding company to own the building and a corporation to conduct its going concern activity. This can provide tax and asset protection benefits, to bifurcate ownership in this way.

When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go