Lando wrote:
Amiga Development LLC is a wholly owned subsidiary. Amiga Inc goes down, it all goes.
Do you have proof that “Amiga Development LLC”’s shares/capital/controling interest are own by Amiga Inc?
How many Commodore or Escom subsidiaries do you know that are still operating?
Depends on the entity structure. To classify a limited liability entity as subsidiary it’s shares/capital/controlling interest must be own by “Amiga Inc” entity, not by another person (e.g. BillMc).
The mother entity (think of a central node) shouldn’t be the one that accumulate large liabilities/riskily contracts.
One can form parallel limited entities e.g.
1st limited entity for employing people (kind’a like labour hire company). (Any employee related liabilities is limited to this entity).
2nd limited entity for trading (any trading related liabilities is limited to this entity e.g. doing contracts deals).
3rd limited entity for critical assets holding entity (e.g. holds critical non-current assets).
All three entities are control by 4th entity (usually a natural person), which is shielded by limited status by these 3 limited liabilities entities. These parallel entities must not intermingle in relation ownership/shares. A careful manipulation of limited entities can offer some protection against Commodore/Escom style bust.
