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so why did the business owner give an umbrella to his employee because he had to cover for him all right lets go ahead and talk about how to start an umbrella or holding llc company step by step so first off you need to know that an umbrella company is basically a business entity that controls multiple businesses at once so if were thinking about like a company chart at the very top you have an umbrella company right hence the name umbrella company because its kind of like an umbrella and then beneath the umbrella company you have other operating businesses or assets which are typically called subsidiaries now you may hear umbrella companies and subsidiaries call different things so for example some people refer to umbrella companies as the parent company in the subsidiaries as the child companies or you may hear umbrella companies referred to as holding companies all right its all basically the same thing now the holding company does not generate any
