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Im not sure as to what a holding company is; I want to form

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I'm not sure as to what a 'holding company' is; I want to form a pharmacy, possibly non-profit, owned by a holding company. I also want to start a second, non-pharmacy, non-profit, owned by a holding company. Is there a problem with as holding company owning a non-profit entity, or a non-profit pharmacy. Would it be better if the pharmacy was 'for profilt'?
Hello and thank you for requesting me. Also, please allow me to thank you for your earlier bonus.

I'm not sure as to what a 'holding company' is

A holding company is a company or firm that owns other companies' outstanding stock. For example, there is corporation ABC, Inc. which has 400 shares. A company called 123, Inc. can own 200 of those. If so, 123, Inc. is a holding company.

A holding company reduces liability risk for the owner of the shares and can allow the ownership and control of a number of different companies.

I want to form a pharmacy, possibly non-profit, owned by a holding company.

If you wish to do this, you can. Essentially, you'd have a company who owns the shares. But honestly, for a small/medium-sized non-profit, this is often not needed. First, non-profits generally DO NOT HAVE shares. Second, even if you have shares somehow, most holding companies are for multi-million dollar shares that go across the spectrum of companies and stocks. For one company, this seems a little bit like overkill.

One is better off simply having a simple corporation or LLC, not stocks (and no holding companies).

I also want to start a second, non-pharmacy, non-profit, owned by a holding company. Is there a problem with as holding company owning a non-profit entity, or a non-profit pharmacy.

No. However, a company that owes another company is called a "parent corporation" (a more general term). A company that holds another company's shares is called a "holding company" (also a parent corporation, but more specifically to stocks).

Would it be better if the pharmacy was 'for profilt'?

If you intend to make profit on the company, then yes. A non-profit has to be approved by the IRS, and falls into one of these categories:

501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Unions)
501(c)(2) — Title Holding Corporation for Exempt Organization
501(c)(3) — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
501(c)(5) — Labor, Agricultural and Horticultural Organizations
501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
501(c)(7) — Social and Recreational Clubs
501(c)(8) — Fraternal Beneficiary Societies and Associations
501(c)(9) — Voluntary Employee Beneficiary Associations
501(c)(10) — Domestic Fraternal Societies and Associations
501(c)(11) — Teachers' Retirement Fund Associations
501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc.
501(c)(13) — Cemetery Companies
501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds
501(c)(15) — Mutual Insurance Companies or Associations
501(c)(16) — Cooperative Organizations to Finance Crop Operations
501(c)(17) — Supplemental Unemployment Benefit Trusts
501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959)
501(c)(19) — Post or Organization of Past or Present Members of the Armed Forces
501(c)(20) — Group Legal Services Plan Organizations
501(c)(21) — Black lung Benefit Trusts
501(c)(22) — Withdrawal Liability Payment Fund
501(c)(23) — Veterans Organization (created before 1880)
501(c)(24) — Section 4049 ERISA Trusts
501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents
501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk Individuals
501(c)(27) — State-Sponsored Workers' Compensation Reinsurance Organization
501(c)(28) — National Railroad Retirement Investment Trust
501(c)(29) — Qualified Nonprofit Health Insurance Issuers (Created in section 1322(h)(1) of the Affordable Care Act)

As such, unless it does, and unless the company WILL OPERATE with a non-profit goal, it is best to do this as a for-profit company.

I hope this helps and clarifies. Good luck.

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