Wyoming state law provides strong asset protection, which is attractive to those wishing to setup a holding company. Here’s how WY holding companies work:
What is a holding company?
A holding company can be formed as a limited liability company (LLC) or a corporation. But, it usually doesn’t manufacture any products or conduct normal business operations like a traditional LLC or corporation would. Instead, a holding company is simply established to house assets, which can include housing other companies. In this sense, a holding company is often referred to as a “parent company.”
Should I create an LLC holding company?
The type of business entity you choose for your holding company is up to you. Many people opt for an LLC holding company because LLCs are relatively inexpensive to form and operate, while still offering liability protection. Corporations are most useful for companies with a large net gains, and aren’t as frequently used as holding companies.
How do I register a holding company in Wyoming?
You can register a holding company in Wyoming the same way you’d register a traditional Wyoming LLC or Wyoming Corporation. Though your holding company most likely won’t have any business operations, you’ll still need to file annual fees to keep your company in good standing with the state.