Real Estate Investing in a Holdco: Pros and Cons
A holding company or Holdco for short is a corporation whose sole purpose is to hold assets. Generally, there are two benefits and or reasons why people want to hold assets in a corporation. Firstly, there is limited liability. So if you’re sued as the landlord a corporate structure can help protect your personal assets. Secondly, there are income tax benefits. You can take excess cash from the company in the form of dividends, which receive preferential tax treatment re