{"id":14844,"date":"2016-03-15T19:37:38","date_gmt":"2016-03-15T19:37:38","guid":{"rendered":"http:\/\/www.oracletutoring.ca\/blog\/?p=14844"},"modified":"2016-03-15T19:37:38","modified_gmt":"2016-03-15T19:37:38","slug":"business-and-economics-holding-companies-part-0","status":"publish","type":"post","link":"https:\/\/www.oracletutoring.ca\/blog\/business-and-economics-holding-companies-part-0\/","title":{"rendered":"Business and Economics: Holding Companies, part 0"},"content":{"rendered":"

The tutor begins exploring the frontier of holding companies.<\/h1>\n

Years ago, training in financial planning, I read about holding companies – mainly about their tax treatment. What I learned was that holding companies can be complex situations.<\/p>\n

A holding company’s purpose is to possess assets – usually, shares in businesses. Essentially, it’s a wealth management tool: the money is made by the businesses whose shares the holding company possesses. That money is then transferred to the holding company.<\/p>\n

What are the advantages of a holding company, in Canada? As I understand, there are three main ones:<\/p>\n

    \n
  1. \nTax Advantage:<\/strong> Potentially, the profits from a Canadian corporation can be received as dividends by the holding company without taxation (at the time).\n<\/li>\n
  2. \nRisk Insulation:<\/strong> If the business that makes the money is sued, the profits it has sent to the holding company are (likely) not available to the plaintiff. Only the business’s own assets are vulnerable to seizure. Since the holding company receives the business’s profits, that business may have little assets to seize, even if it is very profitable.<\/li>\n
  3. Wealth Transfer:<\/strong> Net worth can be transferred via shares of the holding company that stores the assets, which is more convenient than changing the ownership of specific assets, especially if they are currently invested.\n<\/li>\n<\/ol>\n

    I’ll be delving deeper into this fascinating world.<\/p>\n

    Sources:<\/p>\n

    nelligan.ca<\/a><\/p>\n

    wireslaw.ca<\/a><\/p>\n

    biv.com<\/a><\/p>\n

    Jack of Oracle Tutoring by Jack and Diane,<\/a> Campbell River, BC.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The tutor begins exploring the frontier of holding companies. Years ago, training in financial planning, I read about holding companies – mainly about their tax treatment. What I learned was that holding companies can be complex situations. A holding company’s …<\/p>\n

    Business and Economics: Holding Companies, part 0<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[371,372],"tags":[1498,1497,1496,1499],"class_list":["post-14844","post","type-post","status-publish","format-standard","hentry","category-business","category-economics","tag-advantages-of-holding-company","tag-advantages-of-holding-company-in-canada","tag-holding-company","tag-what-is-a-holding-company"],"_links":{"self":[{"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/posts\/14844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/comments?post=14844"}],"version-history":[{"count":17,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/posts\/14844\/revisions"}],"predecessor-version":[{"id":14861,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/posts\/14844\/revisions\/14861"}],"wp:attachment":[{"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/media?parent=14844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/categories?post=14844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oracletutoring.ca\/blog\/wp-json\/wp\/v2\/tags?post=14844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}