3 ms·
What's the advantage of this? Portions of your corporation can go bankrupt without submarining the whole enterprise?
by noveltyaccount 5y ago
What's the advantage of this? Portions of your corporation can go bankrupt without submarining the whole enterprise?
- vmception 5y agoThats what they do. It also earns money from leases (tax event), while itself pays a lease to a subsidiary (tax deduction). Who knows how the subsidiary is structured or returns money to shareholders or if it is located in a different jurisdiction with more favorable taxes. Each subsidiary is different. Each vehicle could theoretically be owned by a distinct subsidiary. Distributing vehicles in the best way to shield liability in the specific jurisdiction of operation. I really do wonder how they return money to shareholders. It could just be all about the potential of returning money to shareholders and never doing so.