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What are the risks or downsides of having a holding company?

TF Con · July 07, 2026

Yes, there are things to weigh. A holding company is a company, so it creates costs and monthly obligations to maintain. It needs accounting kept up to date every month. If it's set up just to hide assets or escape debt, the court can strike down the structure. And, depending on the assets and the state, transferring the properties may have upfront costs, such as the ITBI (municipal real estate transfer tax) in certain cases. That's why it's not for everyone. TF Con puts everything on the table beforehand: cost, benefit, and risks. You decide with clear information, no surprises down the road.

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What is a family holding company? Explain it to me in a simple way. How does a holding company really protect my assets? Is it worth setting up a holding company just to pass the inheritance on to my children? Is it true that with a holding company I pay less tax on the inheritance?