If you own more than one business or plan to, you need a holding company.

If you own more than one business or plan to, you need a holding company. Here is how to set up a holding company in five steps, even if you've never heard of one or you don't know what it mean. A holding company is a parent company that own other businesses. And it is the safest way to structure multiple entities. Let me break it down for you in five simple steps. One, you're going to form your holding company. This can be an LLC or C corporation, but you want to form a holding company in a state like Wyoming or Delaware. Your holding company does not operate. It just hold assets and ownership stake of your other businesses. Step two, you're going to form the operating LLC. These are the LLCs or the C corporation that actually does the business. They are the one that sign the contract, do the actual business, and each LLC or C corporation is a child to the parent company. Step three, you need to transfer ownership. The holding company becomes the member of each LLC that you have. Now if one of the operating LLC gets sued, the holding company is shielded and the other LLCs are also protected. Step four, you have to open business bank account. One for the holding company and one for each individual LLC that the holding company owns. And step five, get an EIN for each entity, so the holding company and the operating LLC, and file your operating agreement. One for each LLC and also one for the holding company. Remember, no mixing. And that is it. Five steps. And that's it. That's the five step. If you wanna learn more, I have an e-course that's gonna teach you how to form your holding company in the state of Wyoming, step by step. It's linked in my TikTok bio. Save this video and drop any questions that you may have.