Corporation: Switching from operating to holding company
Hi everyone,
After being unsure/unclear from my meeting with accountant, I wanted to ask this forum to double check:
A. Can I switch my existing corporation (operating company aka "opco 1") to a holding company in the next few months? I would not renew any service contracts and the existing assets (mostly software) will be leased to the new operating company (opco 2) that will have opco 1 as the owner?
B. I plan to have opco 2:
My accountant didn't sound as convincing and I think it could be the software/app store angle (although these should just be treated as any regular asset). I am open to any recommendations for accountants as well. I also think I should reach out to a lawyer to talk about how to lease the assets in opco 1 to opco 2. Thanks in advance.
After being unsure/unclear from my meeting with accountant, I wanted to ask this forum to double check:
A. Can I switch my existing corporation (operating company aka "opco 1") to a holding company in the next few months? I would not renew any service contracts and the existing assets (mostly software) will be leased to the new operating company (opco 2) that will have opco 1 as the owner?
B. I plan to have opco 2:
- to list all the app in the app store
- pay the two contractors (currently paid by opco 1)
- transfer any remaining profits to opco 1 (now a holding company) as dividends
My accountant didn't sound as convincing and I think it could be the software/app store angle (although these should just be treated as any regular asset). I am open to any recommendations for accountants as well. I also think I should reach out to a lawyer to talk about how to lease the assets in opco 1 to opco 2. Thanks in advance.