Hello,
I have never used a holding company, so I have some questions about if/how can I use them in my case.
I have a Single Member USLLC, which I conduct my remote business out of. I personally own about 400 domain names which I have acquired over 15 years, some of which are leased out to various other businesses at a fixed amount per month. Currently, I have the lessee pay to my US LLC. This is passive income to the tune of about $20k/month. This is adding $250k/year to my USLLC's revenue and since it's passive income, I am trying to see if I should use a better structure for this part of my business.
My question is about using a holding company for these domain names. If I form a Panama Holding company (or am open to recommendations), and that company gets paid from the lessee(s) for leasing the domains, would any substance be required for the entity? Since it only owns the domains which doesn't require any real work, what type of substance would be needed anyway?
I have never used a holding company, so I have some questions about if/how can I use them in my case.
I have a Single Member USLLC, which I conduct my remote business out of. I personally own about 400 domain names which I have acquired over 15 years, some of which are leased out to various other businesses at a fixed amount per month. Currently, I have the lessee pay to my US LLC. This is passive income to the tune of about $20k/month. This is adding $250k/year to my USLLC's revenue and since it's passive income, I am trying to see if I should use a better structure for this part of my business.
My question is about using a holding company for these domain names. If I form a Panama Holding company (or am open to recommendations), and that company gets paid from the lessee(s) for leasing the domains, would any substance be required for the entity? Since it only owns the domains which doesn't require any real work, what type of substance would be needed anyway?
