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Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. Your subsidiary is a separate entity so its activities cannot be attributed to the parent company as long as it juridical separateness is respected by the parent, in other words, it consistently follows its corporate procedures. To qualify as an S Corp subsidiary it must be 100% owned by the parent company. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.