Why & How to Create LLC Holding Company Structure (With Examples)

In this video I explain: (i) what do LLC holding company structures look like, (ii) what are the advantages & disadvantages of holding companies, and (iii) how to set them up on your own (with holding company examples).

I try to present this in a simple and straightforward manner and address questions I think you might have. However, if you have any additional questions, please leave them in the comments section!

Although I use a Wyoming holding company structure as an example in this video, you can use other states' LLCs at the top of the holding company structure. Although WY is what I suggest for the reasons set forth in my video below, my second choice is Delaware, then Nevada, then New Mexico.

Chapters:
00:00 Intro to Holding Company Structure
00:38 Graphic on Simple Holding Company Structure
02:31 Graphic on Multi-Property Real Estate Holding Company Structure
03:48 Benefits of Holding Company Structures (Asset Protection, Privacy, Tax Return)
09:44 Any Disadvantages of Holding Companies?
11:08 How to Set Up a Holding Company Structure on Your Own

*Next Steps After Setting Up Your Holding Company LLCs:*

*LLC Operating Agreement Options:*

1. Basic Free Version (included in Standard & Premium Packages using Link Above at the Top)

*LLC Management & Operations:*

Thank you!
Best regards,
Chris Jackson
@cjlawvideos

*Bio:*
I have over 25 years of experience as a California-licensed business attorney. I'm also an entrepreneur who has owned, managed and sold at a significant profit multiple franchise coffee houses. In addition, I have finance and operational experience in several companies, including as a Chief Operating Officer (COO) and General Counsel of a group of companies.

*Legal Disclaimer:*
NOTE that nothing in this video is intended to create an attorney-client relationship. This video, the description above, my answers to questions, and my channel are for general information and entertainment purposes only and should not be construed or relied upon as legal or tax advice (generally or specifically). You should not act or rely on any of the information contained herein. For legal or tax advice, I encourage you to get such advice from an attorney and/or CPA authorized to practice in the applicable state.

*Affiliate Notice:*
Some of the links in the description, video and/or comments may be affiliate links whereby if you select such links and purchase something, my LLC may earn a commission *(at no extra cost to you)*. Note that I only recommend companies or services I use myself, and any commissions received by my LLC support my channel, and for that I thank you - it is much appreciated!

[cjlawvideos]

Thanks for watching my video! If you have any questions, please let me know and I'll try to get back to you as quickly as possible. Best regards, Chris

[EMG]

Hi Chris. I watched all your videos on this channel. Thank you for this information!

I set up an LLC in wyoming and also an operating LLC in Ohio. The operating LLC will be taxed as an S Corp, but Im wondering if the Holding LLC in Wyoming also needs to be set up that way.

[Debbie-uq]

Thanks for another very informative video. I'm literally setting up by business step by step as I watch your videos. 🙂 I now have a question about DBAs. I plan to file one for my California LLC. It seems fairly straight forward but are there any pros/cons/issues to keep in mind that some people might miss when filing DBAs?

[jeffvojtko]

I live in OH. And, have watched many of your videos along with Anderson Advisors, etc. I want anonymity and was thinking a holding co structure sounds exactly what I want. I think I'd setup the WY LLC as manager managed with Bizee as the manager, then they would resign and the OH LLC would be member managed with the WY LLC as the only member. Would I then setup a trust as the only member in the WY LLC?

[jafflsports]

What is the process of moving a rental property that is in my personal name to a WY holding LLC?

[icilahmb]

Does this mean that my LLC in Tennessee needs to have only one member, Which is my LLC in Wyoming? And do I need to Bank Accounts to do Business in the LLC's, or can the Bank Account in Wyoming purchase property in Tennessee and place it under Tennessee LLC?

[epirouette]

In case of changing it after the fact, do you file an amendment form with the Secretary of CA to reflect the change? Or is there another form for an interest contribution and change in ownership?

[mustaphaalaoui]

If you set up a holding company in WY but running a business in California, is it possible to name the holding LLC and California LLs the same. Can you have one name for both LLCs?

[Solomonuniverse]

May I ever call your business line for tax consultations in California laws ?

[olardavis]

@cjlawvideos what do you think about a holding company llc in Nevada?

[lamonteasterjr]

It seems like there’s literally no point to form a solo LLC in California, other than getting an EIN number