what is a personal holding company 
a personal holding company is a company where five or fewer individuals control 50 of the ownership stake and at least 60 of the company s income comes from passive sources 2the bottom linea holding company is a type of business entity that has a single purpose owning other companies some holding companies are large conglomerates with arms in many different industries others only exist to manage a single subsidiary holding companies can help protect their owners from losses or they can also be used to reduce tax burdens 