Randall Miller Holdings – Community Investment in Pasadena

Should I Form a Holding Company for My Businesses?

Investing in Many Businesses

Some entrepreneurs invest their funds into small businesses. Let’s put it this way; a young go-getter named Angela Smith ventures into a variety of businesses involving gadgets and appliances. She then thinks of maximizing its asset protection, and put those businesses under separate Limited Liability Companies, (LLC) and then form an operating company — holding company. One of her main reasons for keeping her businesses under separate liability is the assurance that in some instances where one of the company backfires, the other companies won’t be affected.

Define Holding Company

In layman terms, a holding company is formed to systematize and organize smaller businesses. Known as the ‘umbrella’ or a parent corporation that controls the shares of other companies it possesses, and sometimes, it could be formed to dominate assets, such as stocks or architectural structures, while the rest of the company or companies serve as its operating subsistence that does not have assets.

Importance of Forming a Holding Company

When you own a chain of small businesses with very few assets just like Angela, there is a tendency that you will have a difficulty in forming a holding company. You will come up with a solution to possibly form just one company, Smith Enterprises LLC and afterward conduct several “propositions” throughout that LLC.

Taking in as an example that Angela has a store that sells appliances, and another one that offers a buying station for second-hand appliances, and she comes up with another idea after that.

Angela could form a fictitious name for each of that entity, given that it is under Mendoza Enterprises LLC.

She doesn’t have to form a holding company but creates a separate LLC for each one of the entity, instead. In that manner, she will have the means to of keeping the financial accounts for each one separate and distribute the expenses (for buying appliances and gadgets, respectively) among his company.

Since his assets are merely appliances that he sells, there won’t be a purpose to create a holding company, except to heel together with the financial accounts for the income and expenses.

Begin an LLC as a Holding Company

It’s a do-it-yourself task. Creating an LLC is effortless since all you have to do is to know what your requirement is as you click the website of the Secretary of State for your state, or reading an article about how to form an LLC will truly help.

Limitations on LLC’s Owning Entities

Even if several legal business subsistence can own each other’s stocks, there are withstanding restrictions that apply. From the state’s perspective, there aren’t too many restrictions — a C company can be in the possession of an LLC, but the restrictions arise on its IRS (Internal Revenue Service). When an LLC is the proprietor of a corporation, therefore, electing the tax status of C corporation should be done.

However, an S corporation is limited to LLC ownership since individuals owners that pay individual taxes can only have access to that type of corporation.

Another unincorporated business that is prohibited from owning another company is sole proprietorship since it is a single business owner who pays personal tax.

Holding Company Taxes

If you have multiple businesses, contacting an attorney is the best option to make. This is to make sure that everything you go through is under the provisions of the law and will have a rippling impact tax consequences.

 

Development Initiative

When it comes to community investing in Pasadena, California, we, at the Randall Miller Holdings aim to increase development initiatives that would lead to economic growth, investment attraction as well as sector innovation and development while enhancing cooperation among communities. More business investments and jobs can also be the by-products of our initiative. It is our conviction that an ideal neighborhood is one which economic and social conditions are balanced.

About Randall Miller

Who We Are

 

Randall Miller Holdings is a community investment company in Pasadena that provides proprietorship in terms of other companies’ stock. We are a company that owns assets; albeit we do not engage in operations, activities and other active business itself, we set sights on owning shares of other companies to create a corporate group. Such investments are stocks, bonds, mutual funds, real estate, copyrights — practically anything of value.

So how do we run this business? This interpretation might help — imagine that your friend is investing in a  bookstore business. He makes a considerable amount of profit out of that and he asks if you want and would like to own a share of the company. You wanted to take part in his venture but not directly. You reasoned out that you don’t want to burden yourself with any personal liability or misfortune your friend’s bookstore business might undergo. There, you have established a holding company. From the perspective of a holding company, you are not going to personally sell books from the fictional bookstore. Let your friend’s hired staff do the work. Supervision is your key accountability and making sure that you help your subsidiaries achieve the target that the board is expecting of them is also within your scope.

What We Do

As a company that doesn’t involve itself in any marketing operation, we basically, are the backbone of an incorporation. When annexes pay out their revenues to us, it is now our liability to invest that allotment in a more profitable, working expenditure. When that happens, we are able to make a profit out of a slow-growing enterprise and turn it around for a ground-breaking boosting. One of the advantages of a holding company is that we assure unanimity and control of subsidiaries in and out of the country. Holding companies allow reinforcement and a series of management turnover, so when instances like helping the least profiting subsidiary occurs, we can respond immediately.

Our Premises

Considering that we are a parent corporation that holds majority of other companies’ stocks, Randall Miller Holdings is responsible for executive supervision, support, setting risk management criterion, and positioning the right people in the right places to a better alignment in our corporate strategy. One great thing about holding company is that it typically consists of myriad businesses. The diversification and adeptness that this shared or reduced costs bring, often make holding companies less vulnerable business than those operating in a niche or individual businesses.

You may experience the difficulty of funding a business that is about to go on a reconstruction, but when you are under a holding company that is successful and profitable, you won’t experience difficulty from availing financial assistance. As a company that holds control over group in the founder’s management during development years, Randall Miller Holdings sets up an incorporated system for the  

Financial assets of its subsidiaries. Holding Companies might have feelings of disdain sometimes due to differentiated of opinions, but still, it is considered as one of the most successful ventures in the world.

 

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Community Investing Initiative

Randall Miller Holdings Community Investing Initiative Community investment is the time, money, expertise and skills spent to develop and support communities. Community investing channels both private and public investments to low-income communities to provide credit, training, and capital the said communities lack. The channels can be loan funds, community development banks, microfinance institutions and credit …

Contact

Contact Randall Miller Holdings Does

Unlike other businesses that generate profits from sales and production by offering goods and services, Randall Miller Holdings deals with investments, assets, and management. It is a limited liability company, a limited partnership, or a parent corporation that has enough voting shares in another company that allows control over its management and policies.  

We are a large and successful holding company that owns outstanding shares of stock of other companies, obtaining certain tax-free dividends that are based on ownership percentages, including voting rights. As a holding company, we are protected from the losses of another company in case one of them goes bankrupt. Although there will be a capital loss on our part, with a little decline in our net worth,  we will not be pursued by the bankrupt company’s creditors and debtors for remuneration. Our company has one subsidiary for our trademarks and name, another for our equipment, another to own our real estate, while the other subsidiary to handle each franchise.  With this type of structure, our company and each of our subsidiary will have limited financial and legal liability. We also allow individuals to safeguard their personal assets. Instead of acquiring personal assets and become liable for the debts, likely lawsuits and other risks that come with any type of business, we can own the assets to protect the individual’s assets and only our assets will be at risk.

From a number of perspectives, our structure is beneficial to companies associated with us. While raising capital, we have more assets compared to an individual company, making the capital increase much easier. Moreover, if we loan the subsidiary money, we can secure the loan, along with our subsidiary’s assets, which eventually form a collateralized loan that puts the company in the first position when there is bankruptcy. Also, we set corporate policies over all subsidiaries without getting involved with the individual management of our subsidiaries.

Randall Miller Holdings’ operations include overseeing the companies it owns. We can hire and remove managers if needed. However, while those managers from other companies should be accountable for their own operations, /Randall Miller Holdings will not. While we do not handle the daily operations of the companies we control, the business owners should strive to understand how subsidiaries work to assess the prospects and performance on an ongoing basis.

Randall Miller Holdings is aimed at investing in and creating a portfolio of sustainable investments that is driven by a set of established goals to form a shareholder value and economic responsibilities. We continue to be committed to integrity and fairness with our stakeholders. The foundation of our company’s investment framework is our ability to notice and catch opportunities and present future initiatives for our portfolio companies to boost their overall value. We promote collaborative partnership with our subsidiaries as an extension of our businesses. Randall Miller Holdings is committed to improving the lives of people in the communities, where are projects and facilities are present, focusing on environmental activities and welfare that will greatly benefit the society in general.