Most people start an LLC to run a business. Sell a product. Offer a service. Simple. However, if you’re like me and juggle multiple streams of income, such as business coaching, speaking, content creation, real estate, or consulting, a single LLC won’t suffice for long.
That’s where a holding company comes in.
What is a Holding Company?
A holding company is an LLC that does not run the business itself. Instead, it owns other LLCs that do. It holds assets, controls operations from the top, and protects you if one part of your business takes a hit.
Think of it like the command center. It doesn’t go into battle. It calls the shots.
Why I Use My LLC This Way
My LLC is my holding company. Under it, I can create other LLCs that each do something different, like:
- Firestarters Coaching LLC for coaching and speaking
- Legacy IP Media LLC for my podcast and digital products
- Robertson Real Estate LLC for land, rental property, or other physical assets
Each of these LLCs is owned by My LLC, not by me personally.
How This Is Different From a Regular LLC
Here’s what sets it apart:
- Liability protection
- If one brand gets sued or fails, it does not take the others down with it.
- Simple ownership structure
- My LLC owns each brand. I just manage them.
- Clean separation
- Each LLC has its own bank account, bookkeeping system, tax ID, and operating agreement.
- Flexible tax options
- One LLC might be taxed as an S-Corp. Another might stay as a disregarded entity. Your CPA can help you decide what makes the most sense.
How To Set It Up
1. Keep the holding company clean
My LLC does not earn income. It holds ownership. That’s its only job.
2. Form new LLCs
Each new LLC is filed like normal. You list Rabason LLC as the owner instead of yourself.
3. Write clear operating agreements
Each business needs its own. Make sure your main LLC is listed as the sole member, and you are named as the manager if you’re running it.
4. Keep everything separate
Separate bank accounts, separate books, and clean records for each LLC. That’s what keeps it protected and legit.
Final Thought
If you are building multiple revenue streams, do not try to cram them all into one LLC. That will create confusion, risk, and tax issues.
Using a holding company structure gives you clarity, control, and protection as you grow.
Got questions? I’ve built it this way and can help you map yours out. Reach out. Let’s get your structure right from the start.
