An LLC is a special entity recognized under state law that is neither a sole proprietorship nor a partnership nor a corporation. A limited liability company allows you to "pass-through" the companyâs profits so that the LLC member or members pay taxes.It also protects your assets if there is a lawsuit, with the company being liable instead of the LLC owner or owners.A subsidiary is a company owned by another company, the parent LLC. The parent LLC owns at least 50% of the voting stock of the subsidiary. The subsidiary enjoys all the same benefits that the parent LLC enjoys in terms of pass-through taxation and liability protection.