Uses of a Holding Company to Own Real Property / Fixed Assets
If your small-business owns real property and other fixed assets, you can creditor-proof the operation by creating a separate company to own the real property and fixed assets. If the operating company fails, your assets in the holding company will be safe. You may also move funds out of your operating company to a related holding company on a tax-free basis and invest these funds to grow the overall wealth of your business. Yes, you will have to pay the tax eventually, but until then, you may have grown the seed money many folds, and it may not hurt financially to pay the tax then.