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Posted over 4 years ago.

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, Business Attorney - New York, NY
Posted over 4 years ago.

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.