When a corporation, called the parent corporation, buys all or the majority of shares in another company, the company becomes a subsidiary of the parent corporation. A parent corporation can also ...

Before the Tax Reform Act of 1986 amended IRC section 336, it was possible for owners to remove assets from a corporation without a corporate-level tax. Section 336 now requires taxpayers to recognize ...

An LLC, or limited liability company, is a hybrid of a corporation and a partnership. It provides personal asset protection like a corporation and is considered a "disregarded entity" by the IRS, ...

When someone says that a subsidiary is “wholly owned”, I believe that the common understanding is that the parent company owns all of the issued and outstanding equity of the subsidiary. What if the ...

Please note: This item is from our archives and was published in 2002. It is provided for historical reference. The content may be out of date and links may no longer function. CERTAIN DEVELOPMENTS IN ...

The Corporate Transparency Act (the “CTA”), a new federal law, went into effect on January 1, 2024 (see our update and summary here). In the weeks since, the Financial Crimes Enforcement Network ...

Many of the largest corporations in the world are made up of a collection of smaller companies. So it should come as no surprise that setting up a foreign subsidiary company is a popular option when a ...

Consolidated financial statements combine parent and subsidiary finances for clearer insight. Investors can evaluate influence and returns by checking ownership percentages on balance sheets. Many ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

Bottom Line: When firms want to shed a subsidiary, they must decide whether to spin off or sell the business. New research shows that selling, rather than spinning, may be the more profitable option.

You are responsible for corporate operations and procurement at the headquarters of a Fortune 1000 company. Your team has done an outstanding job selecting preferred suppliers, negotiating prices and ...