Legal Question in Business Law in North Carolina

corporate subsidaries

I would like to know what is the proper paperwork to needs to be file in this state for a corporate subisidary? I also would like to know what is the liability for the parent company to its subsidary. Can a subsidary be own jointly by a corporation and a sole propiertor? Thank you very much.


Asked on 3/10/98, 8:34 pm

1 Answer from Attorneys
Robert Friend Robert H. Friend, Attorney at Law

Corporate subsidiary

Yes, a corporation and an individual may share ownership of another corporation. However, if either of the corporations is an S-Corporation, you are going to need legal advice. Frankly, my recommendation is to seek legal advice anyway, because you are getting into a dangerous area that cannot be effectively answered in this manner. A subsidiary corporation is simply a corporation that is owned by another corporation. If you really need to do this (I'm wondering what you have in mind), the taxation of the two corporations can boggle your mind a bit. Tread carefully! If you don't feel that you can afford good advice, it's probably not a good idea to do it.

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Answered on 3/16/98, 2:21 pm


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