Why does Drake have so many companies?

Amid the feud between Drake and his Los Angeles-based rival Kendrick Lamar, online sleuths uncovered details about the former’s businesses and other holdings that started a buzz on social media.

Over the course of April and May the two prolific rap artists, widely considered two of the best of their generation, exchanged a series of diss tracks airing their personal grudges.

Chatter online between fans led to some of Drake’s naysayers posting public records available in the U.S., revealing personal and financial details about the 37-year-old Toronto rapper. CBC News obtained a collection of similar documents, sourced from the American data goliath LexisNexis, Pacer and others, and took a closer look at the multi-Grammy winning artist and his business dealings south of the border.

Much of the interest surrounding the records centres on Drake’s many businesses and what some suggested is an overuse of limited liability companies (LLC). An LLC is a type of business that allows an individual to separate their personal wealth and assets from an owned business, while still allowing them ownership over that business.

The CBC News search showed that Drake had incorporated approximately 52 entities, of which 38 were LLCs.

Multiple LLCs

But experts say, for a person like Drake with an estimated net worth of $250 million, having multiple LLCs or other incorporated ventures is a legitimate business practice.

“It’s very common for people of very high net wealth to have an inordinate amount of LLCs at times,” said Robert Kleinfeldt, senior corporate counsel at U.S. law firm Romano Law.

“Donald Trump has quite a few of them… That is a form of asset protection: When you have that kind of net worth, you kind of have a bull’s eye or a target on you for what can be frivolous lawsuits at times.

“It’s honestly advisable in many instances, when you have that kind of net worth,” said Kleinfeldt about Drake’s business practices. “It’s a good way of protecting yourself from potential creditors trying to reach your assets through no fault of your own, whatever the case may be.”

WATCH | How Drake uses his companies to protect his wealth: 

How Drake uses his companies to protect his wealth

Drake’s feud with Kendrick Lamar prompted critics to question the Toronto rapper’s business dealings, including the number of companies he owns. CBC’s Ben Makuch accessed public records to examine Drake’s companies and real estate holdings.

There are several clear themes among some of the 52 entities’ names. Others are mysterious.

For example, one of the first viral tweets drew attention to the ominous name…