Community and regional banks throughout the country form Nevada or Delaware investment subsidiaries to achieve a number of benefits. A bank forms a wholly owned subsidiary and capitalizes it with all or a portion of its fixed income portfolio. KeyState and our investment officers are then hired to manage the bank’s investment subsidiary.
Benefits to forming a NV or De investment subsidiary:
• Outsourcing of portfolio to group of 5 seasoned investment officers with combined 100+ years of fixed income portfolio management experience; offering significant backup vs. a bank’s single investment officer or CFO with multiple areas of focus
• Saving in custody and bond accounting expenses due to KeyState’s scale and volume
• Extensive municipal market expertise
• Dodd-Frank compliant pre-purchase & ongoing credit analysis
• Potential state tax savings on fixed income portfolio income
• Investment subsidiary is NOT a bank, and therefore, not subject to TEFRA haircut on municipal bonds
• Ability to purchase general market municipal bonds, capturing higher yields and liquidity
THE KEYSTATE ADVANTAGE
• Over 120 banking clients across the United States
• 24 years of experience creating subsidiaries and investment holding companies
• Superior service
* Nevada does not have a corporate income tax and Delaware law provides an exemption from corporate taxation for a Delaware investment corporation that qualifies under Section 1902(b)(8) of the Delaware Code. Persons interested in the potential tax benefits of domiciling an entity in Nevada or Delaware are advised to consult with their legal and tax advisers.
KeyState Corporate Management makes no representations as to the effectiveness of any particular tax strategy.
CONTACT
Josh Miller, CEO • [email protected] • 702.598.3738