01
The challenge
The founder had five contractors ready to start but no entity to contract through. He wanted a holding company for future ventures, an operating company for the media business, as little personal information on public records as possible, and a bank account and credit line in the business name. All of it had to happen in the right order.
02
Our approach
- Structure before filings. We confirmed a parent–subsidiary LLC structure: the holding LLC owns the operating LLC, and both are disregarded entities reporting on the founder's Schedule C at launch.
- Privacy by design. A commercial registered agent, virtual business address and business-only contact details kept the founder's home address off public filings.
- Formation sequence. Holding LLC first, then the operating LLC, EINs on Form SS-4, operating agreements, and then bank account and credit applications.
- Tax strategy memo. An accountable plan for reimbursements, Form W-9 and 1099-NEC procedures for contractors, and a profit threshold at which an S corporation election (Form 2553) and owner payroll make sense.
- Brand protection. Trademark and copyright needs were scoped for coordination with an IP attorney.
03
Results delivered
- Both entities formed and in good standing, with EINs and signed operating agreements.
- Contractors onboarded through compliant agreements and tax forms.
- A written roadmap for the S corporation decision as revenue grows.
- A clean base for year-round bookkeeping from the first transaction.
04
Frequently asked questions
A holding company can separate valuable assets such as brands and IP from operating risk and makes it easier to add ventures later. It adds filings and cost, so it suits founders planning more than one business.
Usually once profit is high enough that payroll tax savings on distributions outweigh the cost of running payroll and paying reasonable compensation.
Under FinCEN's March 2025 interim rule, US-formed companies are currently exempt. The rule is subject to change, so confirm the status when you form.
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