Can a Limited Liability Company own other companies, i.e. be set up as what people often call a “holding company”?
Each state has statutory requirements for amending an LLC’s Articles of Organization. The name of the Limited Liability Company would fall under this charter.
Unless a different tax election is made by the taxpayer, the IRS treats Sole Member Limited Liability Companies as a “disregarded entity”.
Except in some highly complex cases that typically do not apply to a small or medium sized business, a company that is set up as a Corporation cannot change that designation to a Limited Liability Company.
The creation of a Limited Liability Company (commonly referred to as an LLC) does offer some liability protection to the assets of the sole person who files it.
A corporation or limited liability company can authorize any person to act on its behalf through the proper process.
The term ‘holding company’ is merely a designation for a for-profit entity whose sole or nearly exclusive purpose is to own property.
Because the LLC filing fees on one state may be significantly higher than a neighboring state, some people consider filing for LLC status in one state while running the business from another.
As an example, an Indiana Limited Liability Company can be created and filed for an Illinois-base business, and doing so will offer the liability protection that any LLC would. Plus an Indiana filing is significantly less expensive to make than an Illinois filing.
But there is more to consider.
The portion “…be removed…” in this question is not clear, and the distinction is important.
In all states, if you wish to file for Corporation or Limited Liability Company as a new business entity, the name of the entity sought to be formed must be distinguishable from any entity already of record.