Hi everyone, hi hi, hello. I'm attorney Aiden Kramer with the law office of Aiden H Kramer in Colorado. And you're watching All with Any Business. And look, it's nobody Rocky! You guys remember my old buddy Rocky, right? You can see this big white buck right there. Well, what Rocky and I are going to talk about today is using umbrella LLC's or holding companies and subsidiary companies, and why one would do that and what benefit and advantages they provide. So, to help explain that, I'm going to do something really special. You know it, you'll love it, you missed it. I'm going to bring in some nice graphics. Here we have a basic illustration of what a kind of simple umbrella or holding company structure might look like. So, here we have obviously a business owner. Business owner Bo stands for business owner, wearing what else would Bo stand for? And Bo owns one LLC, LLC one. He is the only owner, the single member in this LLC. And this LLC one would be typically referred to as the holding company. And then LLC one owns LLC two and LLC three. LLCs two and three are normally referred to as the subsidiary companies. LLC one might also be called the parent company. And I say this as LLCs, but this is also very common with corporations or having the corporation be the holding company and the LLCs subsidiaries. You can do it with really any sort of business entity. So, that business owner owns LLC one, but LLC one owns LLCs two and three. LLC one is the only owner, the only member in these other two. So, these other two LLCs are considered single member LLCs. Now, there are two primary advantages to doing this. The first is...
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Video instructions and help with filling out and completing How Form 8865 Corporations
