A subsidiary is a company that is controlled by another company. The parent company owns at least 80% of the subsidiary's voting stock. A subsidiary can be either a limited liability company (LLC) or a corporation.
A parent company has two types of subsidiaries: wholly owned and partially owned. In a wholly owned subsidiary, the parent company owns 100% of the stock and thus controls all decisions made by the subsidiary. In partially owned subsidiaries, the parent company owns less than 100% of the stock but still has control over its operations.