How I handle legal structure without losing my mind

Do not index

Here's what nobody tells you about running multiple companies:

The legal stuff will eat you alive if you let it.

I run 6 products across multiple countries. Every product with co-founders.

Every founder I talk to thinks they need:

A Delaware C-Corp from day one.

Separate legal entities for each project

Complex equity structures before revenue

Lawyers on retainer

They spend 6 months on paperwork before shipping a single feature.

Here's how I actually do it 👇

Start everything under one umbrella

Every new project starts hosted by TMaker (my holding company).

TMaker pays all expenses. TMaker receives all revenue.

But TMaker doesn't own 100% of those projects.

Here's how it works:

At the end of each month, TMaker calculates profit for each project and sends the profit share to each co-founder based on their ownership.

No separate companies. No complex structures.

It’s a super simple structure that helps us get started.

Why this works

You don't need a complicated legal structure before you have product-market fit.

Revid.ai started this way. Outrank.so started this way.

Build first. Validate first. Create legal entities later. That’s the way I operate.

The structure is simple:

One holding company handles everything

Co-founders get monthly profit distributions

Clean books, zero legal headache

When to split into separate companies

We have a clause in every contract I do with co-founder: if a project hits $100k MRR, any co-founder can enforce the creation of a dedicated company.

At that point, all IP transfers to the new entity. Much cleaner.

This happened with Revid. This happened with Outrank too, when we hit $100k MRR.

Before $100k MRR we stay lean. After $100k MRR we formalize it.

Why is $100k/month the milestone?

$100k MRR means:

You've proven the product works at scale

Revenue justifies legal costs

Structure complexity is worth it

Below that - you're burning time and money on paperwork for a product that might not work.

I've killed multiple projects that never hit $1k MRR. Imagine if I'd spent $5k on legal structure for each.

What you actually need

To make it super simple for you, here’s what you need:

Before $100k MRR:

Clear ownership agreement (written, signed)

Profit distribution formula

IP assignment clause for future split

Exit clause if someone wants out

That's it. One umbrella company, one agreement, done.

After $100k MRR:

Dedicated legal entity

Proper corporate structure

Transfer all IP cleanly

Set up proper accounting

This is when you are ready for a legal headache.

Bottomline

Stop optimizing legal structure before you have revenue.

Start lean.

Create complexity only when revenue justifies it.

The best legal structure is the one that doesn't distract you from building.

Tell me by replying below:

Are you stuck in business regulation right now? 👇

Can you fully focus on your business because of it?

I read every email and reply often!

Tweet of the week

Intelligence as a moat is drying up faster than you can think.

Instead, speed is becoming the new moat.

Work on your goals daily.

That's it for this week.

Until next week,

Keep building

Tibo 💻

P.S. If you're a lawyer reading this and thinking "but what about liability!" - you're right. This works for internet businesses with low legal risk. If you're in healthcare or fintech, ignore everything I said and comply please 😅