Should I set up a holdings company?


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Should I set up a holdings company (an LLC, taxed as an S CORP that we'll call "PARENT") that owns ownership in other entities I work on?

This might not be best place to ask this question, but I lurk here quite a bit and am in need of serious help (and you guys generally have great feedback.

* I own 100 percent of PARENT
* PARENT owns 90 percent in company A
* PARENT owns 50 percent in company B (unrelated to A)
* PARENT is licensed to publish a book that I own, so profits go to PARENT and then pays me as a distribution
* Other things I work on will be added to PARENT overtime


Reasons for doing this: Possibly more protection, keeping all my assets under one company, and only needing 1 company to pay me a payroll (vs. 3 companies if I do them all separately, probably meaning less Self Employment Tax in the long run)

Possible problems/questions:

* What if Company B gets sued, is PARENT potentially liable? How about Company A, is it liable as well even though it's unrelated?
* What if there wasn't a PARENT company, would the other company be liable since I'm linked to both?
* Is there any unknown tax, or will it simply be a double flow-through entity for my rights in Company A and B? My fear here is that I'll be double-taxed, on the PARENT end and on Company A and B's end.
* Since PARENT owns rights in A, B and my book, can I be on the payroll of only PARENT, with the rest being distributions paid to PARENT (and virtually me)?



Thank you for your help!!!!
Ash
 
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