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Is it possible to share ownership of foreign subsidiary in the US?

Astoria, NY |

One foreign company would like to open a subsidiary in the US and they offered me to run it and 50% of ownership. I would like to check what is the best way to provide this?

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Attorney answers 2


Yes. This is possible. Assuming the foreign owner would like to operate through an LLC, you would need a well drafted LLC operating agreement to protect both of your rights. We handle this type of work, but so do many business attorneys in NY. Please feel free to contact us if you would like to discuss a possible representation.

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Thanks Jeffrey. I was asking this because I heard that parent company should owns more then 50% of ownership of the subsidiary in order to justify subsidiarity status. We would like to share 50-50% of ownership between me and the parent company. Would we still be able to consider as a subsidiary with 50-50?

Jeffrey Mead Kurzon

Jeffrey Mead Kurzon


If you do it through an LLC, there should be no problem except that with 50-50 you risk decision making deadlock and by some definitions of subsidiary, more than 50% is needed. So you may want to do 50.1% and 49.9%. I am not sure and it depends on the circumstances. Why you need it to be called a subsidiary, I am not sure. Also, you can be the manager and then have "control" so to speak with as little as 1% ownership. The LLC law is very flexible. But if you think there is something I can help you with, please let me know. You will need a well-drafted operating agreement, which is something we regularly do.


Lots of ways to do this. Company could own 50% of the company and you could own 50%. Anyway you look at it you need some form of partnership agreement to spell out who gets what and what happens in various situations. Here is an article we wrote on business entities. We would be happy t help you.

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