How do I start a holding company?

To start a holding company, form an LLC or corporation in a business-friendly state (Wyoming and Delaware are popular choices).

The holding company's purpose is to own assets, subsidiaries, or investments rather than conduct active business operations. After formation, transfer ownership of your operating businesses or assets into the holding company. This creates liability separation: if one subsidiary is sued, the holding company's other assets are protected. Choose Wyoming for privacy and low fees, or Delaware for complex multi-entity structures. Your holding company needs its own EIN, bank account, and operating agreement. Maintain clear separation between the holding company and subsidiaries (separate books, separate bank accounts, no commingling of funds) to preserve liability protection.