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Holding Companies? Do you really need them?

Writer's picture: Belle TerreBelle Terre

Have you ever wondered how to create a holding company? Holding companies are "all the talk" amongst online entrepreneurship gurus and entrepreneurship conferences. Holding companies are touted as a way to seem like "a big boss" and CEO.


A holding company is when one company owns other companies. Holding companies are not recommended for new or solo entrepreneurs. A holding company can jeopardize an entrepreneur's limited liability if they are all not managed separately and have contracts between them. Forming a holding company as a new and/or solo entrepreneur can create the illusion that you are engaging in illegal activity. After all, the law requires that holding companies be managed separately and have contracts between them.


You do not need a holding company to succeed in business. A great way to avoid the headache and potential criminal implications of a running a holding company, is to connect all of your businesses through branding (trademarks). A great example is the rapper T.I.'s "Grand Hustle" brand. He has multiple businesses, that sell different goods and services that are connected by the name "Grand Hustle". This way, he is able to avoid the heavy red tape of a holding company and operate his businesses legally and ethically. When people hear "Grand Hustle", they automatically think of T.I. and all of his different companies that use a variation of "Grand Hustle" in their names. To learn more how to connect multiple businesses through a trademark, click the button below.




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