Legal Question in Business Law in Delaware

This is a fairly complicated process that entails setting up the first (parent) company, then issuing the proper corporate resolutions and enacting the necessary corporate governance documents. Then forming the two other (subsidiaries) companies, issuing all the stock of those companies to the parent company while also enacting governance documents for each subsidiary reflecting their status as a subsidiary.

I assume that you are (will be) conducting a significant book of business to warrant this structure. If not you ought to consider alternatives.

I offer lawguru users a discounted flat fee consult during which we would discuss this contemplated structure and possible alternatives. Contact me directly.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

In general, you would set up the 3 companies with the subsidiaries' stock issued to the parent company. Depending on what you want to do with the companies and how you want to run them, you may also want to consider setting up the subsidiaries as LLCs, which would avoid much of the formalities required to maintain the corporate form. You should consult with an attorney to discuss the details of the options and how to proceed.