ANALYSIS OF (Virgin Group Ltd) AS A HOLDING COMPANY
Having one LLC under which other businesses operate, either as a Doing Business As (DBA) or a
holding company, can be perfectly fine. On the other hand, you can certainly create a new LLC
for every business you want to make.
Making multiple LLCs, in fact, is perfectly legal; there is no limit to the number of LLCs one
person can register. On the other hand, it's more paperwork than you might otherwise need to do.
Taxes become individual taxes for each LLC, rather than one larger aggregate whole. Managing
business licenses, EINs and fees can add up in both time and money.
Advantages of a Holding Company
There are advantages to companies becoming a subsidiary of holding companies. Consider the
following pros:

Holding companies protect the parent company from losses by subsidiaries.

Holding companies can provide cheaper operating capital to their subsidiaries.

Parent companies can take advantage of regional taxation laws by moving the holding
company and subsidiaries to different jurisdictions.
Disadvantages of a holding Company



Holding companies can come with reduced transparency, making it harder for investors
and creditors to assess the health of the enterprise.
Parent companies can abuse their subsidiaries by forcing them to trade with one another at
non-market prices.
Parent companies can also force their subsidiaries to appoint chosen directors or change
their policies.
Recommendation for the company
1. Customize applications to fit your needs
Don’t try to “make do” with add-on applications that almost do the trick. What you need
is automated business financials that let you add features and enhance capabilities that
match your regular workflows and preferred ways of getting everything done. Your
dashboard should offer easy access to your most-used data, and you should be able to
customize reports by location, region or any other needed criterion.
2.
Seek the most efficient multi-entity accounting software available
The last thing you need is an accounting solution that wastes time by forcing you to jump
through hoops. In the best possible scenario, your solution will enable you to smoothly
complete work for multiple clients, companies, subsidiaries, and partners on one interface
without logging in and out of various databases — and without incurring the costs of
multiple kinds of software.
The right solution will conserve your time, energy, focus and money instead of wasting it
continually switching between silos of information. In one recent example, the Oklahomabased Onefire Holding Co. was able to reduce the screen time needed for multi-entity
accounting by a full 50% after it switched from QuickBooks Enterprise to Gravity
Software™.