The Basics of Parent/Subsidiary Companies

You may be wondering about what’s up with parent and subsidiary companies.
We talk about it in this #video.
Check it out and join me in the comments with your thoughts!
Shawn
www.rsmlawpllc.com
NOTE: While legal issues are discussed this is education and is not legal advice. It is not a substitute for the advice of an attorney. Please consult your own attorney on your situation and get legal advice about your circumstances. Courts are unpredictable may disagree with the author’s opinions.
This is not financial or investment advice.
P.S. You may get new updates on business issues by following on substack: rsmlaw.substac...
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#business #businesslaw #corporations
Video Concepts:
The Basics of Parent/Subsidiary Companies #business #businesslaw #corporations, business, business law, corporations
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[@ther.shawnmcbridelawfirmpl5207]

If you are thinking about setting up your businesses make sure you subscribe to our channel: kzbin.info/door/ooMqngv979ADQ-6G38lARg

[@AMPProf]

Omg Thankyou...!

[@AMPProf]

University was ages ago... And this cubical is yellowed

[@henlohenlo689]

as far as mitigating lawsuits chances and severity. does it work? yes. but it only works because it's relying on most litigants to be uneducated on business. which most litigants are. can good litigants still penetrate and hold parent companies liable and joint liability, etc. yes. so it's not a get out of jail free card just because they thought enacting a business entity structure work. it may be peirced by good litigants.

[@ivanthomas6262]

This is major. Thank you very much sir

[@pavel5362]

Thank you. Based on your experience, should all companies of the group do beekeeping separately (every company has separate accounting base and considering as a separate business)? I guess, it's a bad idea to have only one accounting base for all companies in one place?

[@martinperry2764]

Currently have LLC (located in CT) but what to create another LLC Company under the Parent Company (which is located in Wisconsin) do you follow the same process?

[@jkli14]

Yes

[@Guilherme-mp8lc]

Is Holding LLC need to have a opering agreement? Or you just need to create a opering agreement for a subsidiary llc and inside this OP you finally define tha second llc will be a subsidiary of first llc?

[@ther.shawnmcbridelawfirmpl5207]

Hi, Guilherme. I will be doing an upcoming video on this topic since I think your question is great. While I can't get legal advice over KZbin I think there are some good general things we can discuss that will help others understand the issue better. Make sure you subscribe to the channel so you see the updates: kzbin.info/door/ooMqngv979ADQ-6G38lARg

[@michaelantoniojeter9865]

Thanks for your video - does a subsidiary have to pay tax on income on paid to parent as as dividend?

[@LovelessRanch]

I second this question, would love to know the answer. Also is that how a parent/holding company gets paid? Is via dividends from the subs?

[@ps7733]

Imagine a parent company in the US is 100% owned by 4 people, each owning 25%. This parent company wants to open a business similar to the parent company's business in Canada. What should be the ownership structure of the Canadian company to be considered a subsidiary? Should each person own 25% of Canadian company too? These 4 people will also be using the income that will come from the Canadian subsidiary.

[@coffeecolorbrotha]

Why would a subsidiary be a parent of another subsidiary

[@sadrakeyhany7477]

Think for example you have an investment firm, your firm purchases a car manufacturer, Said car manufacturer can grow and make their own subsidiary to better compete in a market, for example, they make sports cars, so their brand image is that of a sporty car manufacturer, they can't all of a sudden start making pickup trucks and expect to make a profit, so they'll either buy an established truck manufacturer company, or make a new brand to exclusively sell trucks, hope this helps 🙏