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Brian Hatano
Guest
I am starting 2 companies. I intended to start a Holding Company to own the two companies. My purpose is to have the holding company retain cash for re-investment into new companies. However, I am concerned that I will end up stuck with the Personal Holding Company tax (The holding company will be owned by less than 5 owners). What is a good way to build up cash to reinvest in new or existing companies?
If the companies being held are LLC's and taxed as pass-through entities, will the holding company avoid the PHC tax since the taxes are on non-passive income?
If the companies being held are LLC's and taxed as pass-through entities, will the holding company avoid the PHC tax since the taxes are on non-passive income?