For a very small company (<20 employees) that is only one legal entity, can anyone think of a valid reason you would have a multi-subsidiary set up? I have a new client a year into implementation that was apparently told by NetSuite to have a "Parent Company" subsidiary and then their actual company as a child of that. I can't think of a reason for this but thought I'd ask.

To allow for future expansions, in that case you will deffo need a new sub. If they 100% will not have future aquistions that why have a 1world account ? Having a parent sitting of top of these 2 means that you can consolidate between the 2 (and also set up an elimination between the 2 if they transact with each other)

Ok, that makes sense - thanks! I was wondering what the reasoning was

It used to be WAY harder to change parent subsidiaries

I imagine that is what they told NS a year ago when they signed up. They aren't even live yet - I feel like they could have just set up 1 subsidiary and added a parent in the future, but I've never gone through that transition before.

There's no reason to change it if it's already there - NS has changed their licensing model around this anyways

Yep, that's a good plan.

We just upgraded to OneWorld and we started with subsidiary = 1 which is the default subsidiary. We've added the parent subsidiaries and it wasn't painful in terms of the tech side.