softwareguru
Junior Member
What is the name of your state (only U.S. law)? Nevada
A partner and I operate a software development company that was formed as an LLC, electing to be taxed as a corporation. We're considering creating an Intellectual Property holding company, not so much for the tax ramifications, as we're already organized and operating in Nevada, but to shield our intellectual property from any claims against the operating company.
What are our options? The holding company will have no real expenses, and no revenue, unless we setup a royalty arrangement with the operating company. The software will be marketed and distributed exclusively through the operating company. Do we have to setup a full-on corporation that will have to file tax returns, etc, or is there a way to accomplish the asset protection without all of the additional overhead?
We've considered a pass-through entity, such as an S-Corp, but I've heard that S-Corps don't offer the same asset protection as a C-Corp.
Thoughts?
A partner and I operate a software development company that was formed as an LLC, electing to be taxed as a corporation. We're considering creating an Intellectual Property holding company, not so much for the tax ramifications, as we're already organized and operating in Nevada, but to shield our intellectual property from any claims against the operating company.
What are our options? The holding company will have no real expenses, and no revenue, unless we setup a royalty arrangement with the operating company. The software will be marketed and distributed exclusively through the operating company. Do we have to setup a full-on corporation that will have to file tax returns, etc, or is there a way to accomplish the asset protection without all of the additional overhead?
We've considered a pass-through entity, such as an S-Corp, but I've heard that S-Corps don't offer the same asset protection as a C-Corp.
Thoughts?