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Often tax (depending on where they're resident) 1. Companies don't die, so are not liable to inheritance tax. 2. (Holding) companies often don't pay capital g
by charlesdm 8y ago
Often tax (depending on where they're resident)
1. Companies don't die, so are not liable to inheritance tax.
2. (Holding) companies often don't pay capital gains taxes, so money can compound tax free. You only pay tax at the end, when you take it out of the company.
3. If they're using (some) debt to invest, using a company shields them from liability and bankruptcy (Google Einar Aas, he bankrupted himself in personal name because he traded using a personal account with leverage)