How do we define: holding company?
Holding Company is a company that usually confines its activities to owning stock in and supervising management of other companies. A holding company usually owns a controlling interest in the companies whose stock it holds. In order for a corporation to gain the benefits of tax consolidation, including tax free dividends and the ability to share operating losses, the holding company must own 80% or more of the voting stock of the corporation.
Every new business owner must learn about incorporating their company. Learning how to incorporate your company is critical to starting up and protecting your future.