By Nellie Akalp
A holding company is a legal business entity (usually a limited liability company or C Corporation) that owns or has a controlling interest in one or more companies (called “subsidiaries”). Other terms for a holding company include “parent company” and “umbrella company.” Regardless of the wording, a holding company helps to protect its individual subsidiaries’ assets and limit liability risks across all of its subsidiaries.
Besides owning other business entities, a holding company may also own other assets, such as:
Stock and securities Patents Trademarks Copyrights Real estate Relationship between a holding company and its subsidiaries
Each subsidiary under a