📅 2026 Update: Key Changes in Holding Companies and Business Formation

Since the original article was published, there have been several significant changes affecting holding companies and business formation in the U.S. These updates include new laws and revised fees that could impact how businesses operate. The earlier article continues further down the page for more foundational information.

🏛️ Corporate Transparency Act Changes

On March 26, 2025, the Financial Crimes Enforcement Network (FinCEN) announced an important change. It exempted all U.S.-formed companies and U.S. persons from beneficial ownership reporting under the Corporate Transparency Act. This exemption became permanent on August 11, 2026.

This change simplifies compliance for many businesses.

📜 State Corporate Statute Reforms

Between 2024 and 2026, various states made reforms to their corporate statutes. For example, Delaware revised sections 144 and 220 of its General Corporation Law. Similarly, Nevada narrowed the scope of certain regulations under its Revised Statutes.

These changes can affect how corporations are governed in these states.

💰 Updated Filing Fees

Delaware has updated its expedited filing fees. The new fees include options like one-hour service for $1,000 and same-day service for $100 per document. Washington State charges $15 for each Apostille, and Georgia has non-refundable filing fees with varying processing times.

Understanding these costs is critical for new businesses.

⏳ Processing Times for Filings

The processing times for corporate filings also see updates. In Delaware, standard processing typically takes 7-10 business days, while expedited options can be much quicker. Washington State and Georgia have similar timelines for their services.

Knowing the expected wait times can aid in planning.

📌 Key Updates Summary

  • 🏛️ Corporate Transparency Act exemptions are now permanent.
  • 📜 Several states enacted corporate statute reforms.
  • 💰 Delaware's expedited filing fees have changed.
  • ⏳ Processing times for filings have been updated.
  • 📅 Understanding these changes is essential for business formation.

💡 Tips for Business Formation and Holding Companies

Review your specific situation with your attorney to ensure all legal aspects are covered.

📝 Understand Corporate Structures

Choosing the right corporate structure is crucial for your business. Options include corporations, limited liability companies, and partnerships. Each has different implications for liability and taxes.

🔍 Stay Informed on New Laws

Keep up with changes to corporate laws in your state. Reforms can affect how you manage your holding company or business. Awareness will help you remain compliant and avoid penalties.

🕒 Leverage Expedited Services When Necessary

If time is a factor, consider expedited filing services. For example, Delaware offers same-day processing for a fee. This can be beneficial if you need to establish your business quickly.

📃 Utilize Free Government Resources

Take advantage of free resources from state offices. The Delaware Division of Corporations, Washington Secretary of State, and Georgia Secretary of State all offer guidance for business formation.

📑 Keep Records of All Filings

Maintain thorough records of your filings and communications. This practice is essential for tracking compliance and can help resolve issues that may arise in the future.

🏆 Business Formation Services Ranked by User Reviews (2026)

This section reviews various services that assist with business formation and related tasks. The rankings are based on Trustpilot data from October 2026. Scores may change over time, and star ratings are just one indicator of service quality, as unhappy customers often leave more reviews.

🥇 1. Bizee

Bizee has been rated 4.8. This service is known for its business formation, registered agent, and compliance services. Reviewers mention that it is user-friendly, but some note unexpected charges that can arise.

🥈 2. LegalZoom

LegalZoom holds a rating of 4.6. It provides business formation services along with registered agent and estate planning services. While many users appreciate its comprehensive offerings, some report delays and communication challenges.

🥉 3. Rocket Lawyer

Rocket Lawyer has a score of 4.5. It specializes in legal document creation and business formation services. Reviewers appreciate the platform’s legal advice, but the subscription model may not fit every user’s needs.

4️⃣ LawDepot

LawDepot averages 4.0. This service is recognized for its customizable legal document templates and affordable pricing. However, some users have reported unexpected charges, which could be a concern for potential customers.

🆓 Free Government Assistance

Many state offices provide free help for business formation. The Delaware Division of Corporations and the Georgia Secretary of State offer resources for forming and managing businesses. Washington State also provides guidance for obtaining Apostilles.

🔎 Choosing a Business Formation Service

  • 📊 Compare Trustpilot scores and review counts.
  • 💼 Evaluate the range of services offered.
  • ⚡ Check for expedited processing options.
  • 💰 Look for transparency in fees and potential charges.
  • 📝 Assess the availability of free resources or assistance.

❓ Frequently Asked Questions

❓ What is a holding company?

A holding company is a business entity that owns the stocks of other companies. Its primary purpose is to control and manage those companies rather than to produce goods or services directly.

✍️ How do I form a corporation in Delaware?

To form a corporation in Delaware, you must file a Certificate of Incorporation with the Delaware Division of Corporations. This document initiates the formation process.

📅 What are the processing times for filings in Georgia?

In Georgia, online filings are generally processed within 7-10 business days. Paper filings take longer, typically around 15 business days.

💵 What are the costs associated with expedited filing in Delaware?

Delaware offers various expedited filing services with fees ranging from $15 to $1,000, depending on the speed of processing you choose.

🌐 Can I form a business entity in Georgia if I am not a resident?

Yes, any individual or entity can form a business entity in Georgia, regardless of residency, as long as they follow the state's formation requirements.

📑 What is an Apostille?

An Apostille is a certificate that authenticates the origin of a public document. It is often required for documents used in countries that are part of the Hague Convention.

⚖️ Recent Cases Impacting Holding Companies

Recent court rulings have clarified various aspects related to holding companies and corporate governance. These decisions can influence how businesses operate and manage their subsidiaries, highlighting the importance of understanding legal precedents.

For updates on additional rulings, visit more rulings on the news page.

End of October 2026 Update





What is a Holding Company?

A holding company is an institution which holds outstanding stock in another corporation. In general, a holding company refers to a company that does not produce goods or services, but simply holds an interest in another company’s work. As a result, the only purpose or function of a holding company is to own shares of another company’s outstanding stock or equity.

Because of their function, holding companies offer a reduction of risk for the owners of companies whose stock is being held. The company whose stock is being held is considered stable and a valuable investment, which triggers more buyers into the market. In turn, the holding company benefits from partial ownership and control of a multitude of companies. This allows a holding company to spread risk over a number of industries and market sectors.


Holding Company Explained

 

Berkshire Hathaway is the largest holding company in the United States. Operated and owned by Warren Buffet, Berkshire Hathaway owns numerous insurance companies, retailers, manufacturing businesses, and other companies. 



Public vs. Personal Holding Companies

A personal holding company is defined under the United States Internal Revenue Code. This definition holds two primary classification systems. Both requirements must be met for the particular corporation to be considered a personal holding company.

The requirements are as follows: The company must pass the Personal Holding Company Income Test which requires the entity to possess at least 60% of the corporation’s adjusted ordinary gross income for the tax year based on dividends, rent, royalties, and interest. In addition, the corporation must meet the Stock Ownership Requirement, which states that at any time during the last half of the tax year, more than 50% in value of the corporation’s outstanding stock is directly or indirectly owned by five or fewer individuals.

The other classification for a holding company is a public utility holding company. These forms of holding companies own shares of subsidiaries which distribute electricity or gas to retail consumers. These companies are regulated by the Public Utility Holding Company Act of 1935, which is a law that regulates electric utilities by either limiting their business operations to a single state or through the enforcement of divestitures so that each company operates as a single integrated system serving a limited geographical region. 



Regulation of Holding Companies

Holding companies are commonly under attack because they utilize their vast resources to dominate particular markets. In the late twentieth century, Federal regulations arose to scrutinize monopolistic acquisitions or the development of anti-competitive business models. As a result, the United States Federal Government has the ability to block potential mergers and the acquisition of majority stock purchases by holding companies. The laws that regulate holding companies are meant to uphold the competitive model under which the United States operates.