# Subsidiary

> Subsidiary — A company that another company, the parent, owns or controls. It is a separate legal entity with its own books; a wholly owned LLC subsidiary that has not elected corporate status is disregarded for income tax but not for state law or payroll.

Source: https://lopifi.com/glossary/subsidiary
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is subsidiary?** In accounting, subsidiary means a company that another company, the parent, owns or controls. It is a separate legal entity with its own books; a wholly owned LLC subsidiary that has not elected corporate status is disregarded for income tax but not for state law or payroll.

## Words this system refuses for it

- division
- branch (parts of the same entity)

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)