Follow these 3 steps to form a subsidiary company. Note, the subsidiary and parent company will be separate legal entities.
1. Complete Articles of Organization
When forming a subsidiary company, you must create and file Articles of Organization with your Secretary of State ‘s office. The Articles of Organization provide the legal foundation for your subsidiary company, and must include the subsidiary’s:
- Name
- Address
- Purpose
- Directors
- Registered agent
- Governing law
2. Apply for City or County Permits
Depending on what type of work your subsidiary company does, it may need certain licenses or permits in order to operate legally within the jurisdiction where it’s based. Your subsidiary’s officers might be required to obtain an occupational license or contractor’s license from their local government office if they intend to sell products or services directly to consumers.
3. Submit Business Application
Lastly, you’ll need to fill out and submit the appropriate application forms to the state where you want to incorporate your business. For example, if you want to incorporate in North Carolina, you might submit forms NC-100 and NC-20 to the North Carolina Secretary of State’s office.
This will likely be referred to as an Articles of Incorporation form, which includes basic information such as the business name, what it intends to do, the address where the business will operate from, and information about the business owners.
Once your application has been approved, you’ll need to register the new business with the appropriate government agencies, such as the IRS.