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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 18388
Experience:  B.A.; M.B.A.; J.D.
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I am a serial entrepreneur with investments in many different

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I am a serial entrepreneur with investments in many different companies. I plan to continue investing in new companies. What type of company should I create as a holding company? I want to create a holding company to own all of the stock in each company I own all or part of, instead of owning it personally. I would like to keep money inside the company, and not pass it onto my return as the numbers are quite large and I do not need them personally.

Would a C-Corp be my best or only option for this?
Submitted: 5 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 5 years ago.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

Question: I am a serial entrepreneur with investments in many different companies. I plan to continue investing in new companies. What type of company should I create as a holding company? I want to create a holding company to own all of the stock in each company I own all or part of, instead of owning it personally. I would like to keep money inside the company, and not pass it onto my return as the numbers are quite large and I do not need them personally.

Response: Yes. Except for the double taxation, the C-Corp is your best bet. The LLC and S-Corp both offer pass-through income and loss. So, for you are trying to do, the C-Corp is the way to go. See the following link:

http://www.bizfilings.com/comparison.aspx?vendorid=B737&KWD=c%20corp%20vs%20llc
Customer: replied 5 years ago.
What part of what I want to do forces it to be a C-Corp?

Is it because the income cannot pass through? It just seems to me, that putting millions and millions of dollars on my personal tax return would not be in my best interest. Would you agree?
Expert:  Phillips Esq. replied 5 years ago.

What part of what I want to do forces it to be a C-Corp?

Response 1: You specifically stated that: "I would like to keep money inside the company, and not pass it onto my return as the numbers are quite large and I do not need them personally.”

Is it because the income cannot pass through? It just seems to me, that putting millions and millions of dollars on my personal tax return would not be in my best interest. Would you agree?


Response 2: Yes and Yes. Hence, my reason for concurring with your intention to go with a C-Corp.

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