what is a holding company

A holding company is a business entity, usually a corporation or limited liability company (LLC), that owns other companies and oversees their operations but exists solely to operate those subsidiaries. Holding companies hold the controlling stock in other companies and may own property, such as real estate, patents, trademarks, stocks, and other assets. They typically do not manufacture anything, sell any products or services, or conduct any other business operations. Holding companies can help protect their owners from losses, or they can also be used to reduce tax burdens. Some holding companies are large conglomerates, with arms in many different industries; others only exist to manage a single subsidiary.