A holding company is a parent company — usually a corporation or LLC — that is created to buy and control the ownership interests of other companies. The companies that are owned or controlled by a corporation holding company or an LLC holding company are called its subsidiaries.
Types of holding companies
Many holding companies don’t manufacture anything, sell any products or services, or conduct any other business operations. Their sole purpose is to hold the controlling stock or membership interests in other companies. This type of holding company is called a pure holding company.
Some holding companies, in addition to owning and controlling subsidiaries, do have their own business operations. This type of holding company is called a mixed holding company.
Other types of holding companies include the immediate and intermediate holding companies, which are holding companies owned by other holding companies or larger businesses.
Be sure to consult with a Tax professional, Accounting or business consultant for the best guidance on structure that best fits your financial goals.