Legacy: The Business Succession Podcast

Do You Actually Need a Holding Company?

• Jared Pilon • Season 1 • Episode 9

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0:00 | 9:50

Everyone seems to have an opinion on holding companies. Your lawyer mentioned it. Another business owner swears by it. You read something about it online. But nobody has clearly explained whether you actually need one.

In this episode of Legacy: The Business Succession Podcast, I’m cutting through the noise on one of the most misunderstood topics in business succession planning. A holding company is a tool, and like any tool, it only works when it is used for the right job.

But the reality most business owners don't hear until it's too late is that by the time you start asking questions about corporate structure, some of the best planning opportunities have already passed you by.

What You'll Learn in This Episode:

  • What a holding company actually is
  • Why not every incorporated business needs one
  • How surplus assets left inside an operating company create unnecessary legal and financial risk
  • Why separating retained earnings and real estate into a holding company creates flexibility
  • Why the Lifetime Capital Gains Exemption requires advance planning

The business owners who benefit most from holding company planning are not the ones who set it up because someone told them to. They are the ones who built their structure with a clear purpose, years before a transition was ever on the table.

Download Legacy's Business Succession Planning eBook at legacyllp.ca. It's free and meant for business owners navigating these decisions right now.

https://www.legacyllp.ca/resources/ebooks/business-succession-planning-canada

Find us at:

https://www.legacyllp.ca/

reception@legacyllp.ca

Timestamps:

00:00 Kicking it off

01:42 Should I have a holding company?

02:55 What is a holding company?

04:49 The reason for a HoldingCo

07:30 Timing planning

08:07 Wrapping it up

#holdingcompany #businesssuccession #HoldCo

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