Advantages Of A 'Holding Company'?

Im seeing more and more affiliate programs going this route, one primary company (the holding company) having full or majority ownership over several programs and i was just wondering, are there any legal or tax benefits from having a corporate structure setup like this that any of you know of?

Im just curious to see what the advantage of having a holding company in place rather than several individual companies when it comes to operating multiple facets of a business.

Anyone have any info on this?

Regards,

Lee

not exactly sure.. but wouldn't a holding company in a country like costa rica have a great deal of tax benefits? Not to mention laws..

A holding company holds other companies so the holding would not need to comply with the laws but the subsidiaries would.

IMHO a holding company for many companies is usefull when you e.g. form a corporation for every sponsor program you own, or for every bigger niche, or just gay / straight.

If one company goes down it does not putt the others down, too - the loss is limited.

As for tax-resons I am not sure but you might be able to juggle funds better

you can find some very good info here

http://www.wsr-corporation.com/en/holding.html


I would suggest you to take a look on the other sections of this site.Everything is explained very simple

thanks smeshko for the very useful link. :thumbsup: