Service or product structure

Selling hours or selling goods: the structure follows.

A service company and a product company ask different things of their structure. One carries people and contracts, the other carries stock, suppliers and returns. Before you pick a jurisdiction or an entity layout, decide which kind of business you are actually building.

Service businessProduct businessHybridEntity layout
The decision

Which assets and obligations does the company have to hold?

For a service business the valuable things are people, client contracts and reputation. For a product business they are inventory, supplier terms, sales channels and the obligations that come with goods reaching a buyer. The structure should sit where those things sit.

What changes between the two

What changes between the two

Where the risk lives

Services carry delivery and liability risk tied to contracts. Goods carry supply, damage and consumer-facing risk. Putting both in one entity is a choice, and the review states what it exposes.

What the entity must show

A service entity is judged on where its people work. A product entity is judged on where goods are held and sold. Mismatches here may prompt questions from counterparties and providers.

How growth changes the layout

Services scale by adding people, products by adding channels and stock. The entity that is sensible at the first sale may not be the one you want later.

Layouts we typically weigh

Layouts we typically weigh

One operating entity

Fits when: One team, one main market, simple flows. Trade-off: All risk and assets in one place.

Operating entity plus holding

Fits when: Owners want to keep value apart from day-to-day risk. Trade-off: More administration and a need for clear intercompany logic.

Separate entities for services and goods

Fits when: The two lines have different customers, risks or partners. Trade-off: Duplicated upkeep and shared costs to allocate.

Selling both? The hybrid case raises its own open questions and may be worth reviewing before registering anything.

Step by step

How the review proceeds

01

Describe what you sell

Say what the customer pays for, who delivers it and where delivery physically or digitally happens.

02

Place assets and obligations

We assign contracts, stock, intellectual property and customer relationships to candidate entities, and flag the unclear ones.

03

Read the options

You receive layouts side by side, what each assumes and what to verify with local professionals.

The service

Business Model and Entity Roles Review

Who it is for
Founders who sell through more than one entity or channel
The problem it solves
It is unclear which entity should invoice, hold assets or contract with whom
What we need from you
  • business model
  • entities and countries
  • customer and supplier map
How it works
  • intake questions
  • LATYNEX reviews entity roles
  • written review
What you receive
A written review of which entity should play which role in the business model, with the trade-offs
Included
  • entity roles and invoicing flows
  • contract and asset placement in principle
  • trade-offs and open points for advisers
Not included
  • tax or IP opinions
  • pricing strategy (Research)
  • drafting contracts
Timing
Confirmed when your request is accepted.
What LATYNEX does
  • review the model
  • map roles
  • write the review
Price
Confirmed when your request is accepted.
Good to know

What this is, and isn't

This is business and structuring analysis, not legal, tax or investment advice. Where a legal or tax opinion is needed, we say so and point you to a licensed adviser.

FAQ

Frequently asked questions

I sell both services and products. Do I need two companies?+

Not necessarily. The review compares one entity against a split and shows what each choice assumes.

Does this cover choosing the country?+

Only as far as the model requires. A full country comparison is a separate Consulting service.

Does LATYNEX handle product sourcing or sales strategy?+

No. This review stays on company structure and entity roles.

Request

Tell us what you need.

No obligation. We read your request and reply with a straight answer.

Consulting

Get an independent view before you commit.

Describe your plan and your constraints. We reply with what we would look at first.

Request an assessment