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37 Comments

Question for founders who run multiple SaaS products.

Hello fellow founders!

Recently I have launched a small SaaS which makes some tiny MRR of 140$.

Based on that product I realize there is a good opportunity to launch another one which can potentially scale better but I don't know how to deal with it legally.

Should I just run it under the same company or should I set up a new one?

So my questions for those who run a multiple SaaS products:

  1. Do you run it as a freelancer or you have setup the company?

  2. If you have company, do you run multiple SaaS under the same company or you have multiple companies for each product?

Thanks in advance!

posted to Icon for group One Person Businesses
One Person Businesses
on March 25, 2023
  1. 4

    I am running multiple products - 2 SaaS, 1 Newsletter, 1 Community, 1 Info Products - Mostly you can run under your name or single umbrella. If you are making less than $1K MRR, you can pretty much do on your name without worrying about setting up a company. I wrote about this in Zero To Founder

    But splitting into multiple separate accounts (for example Paddle suggests having different accounts for each SaaS) will make things easy when you want to sell the SaaS to a new owner.

    1. 2

      Amazing, thank you so much, you gave me the clear answer! I will read Zero To Founder. Thanks!

  2. 2

    I run under the same company when I start something just to avoid the hustle in the beginning then switch to it's own company later on. If you plan on selling then you will benefit from having a separate company/accounts/etc.

    1. 1

      Totally agree, not sure if anyone will buy it anytime soon :) Thanks for reply.

  3. 2

    one company can manage multiple software, depending on the country and laws you have, you can have all your digital income under one "agency" name no problems, then differentiate your online identity so each product has it's name, brand and identity but in the background "developed by agency etc..." like videogames or meta that has facebook and instagram and more in one

    1. 1

      Yeah for now one will do until I scale.

  4. 2

    Recently, you could consider staying with the same company because it won't require additional expenses for company registration and other costs.

    Try to stick with the current company, and when you see positive responses and increased revenue, you can consider transitioning to a new one.

    1. 1

      I will stick to that plan of doing everything with one and later one if it is scaling I can always set up second. Thanks for replying.

  5. 2
    1. Do you run it as a freelancer or you have setup the company?

    Setup a company, you're making money, play it safe :)

    I used firstbase to setup mine, there's also stripe atlas or other options

    1. If you have company, do you run multiple SaaS under the same company or you have multiple companies for each product?

    If you're solo, do both under 1, if you have a co-founder for 1, then make two

    1. 1

      Yeah I am solo so I'll do all under one company. Thanks for answering my questions.

  6. 2

    depends on your country of residence, my 2 cents:

    • Having a company is a very good idea for tax purposes
    • if your multiple SaaS products has med/low MRR, it's better to run it under the same company
    • having a company makes for a positive moral, and can encourage you to increase the MRR 😉
    1. 1

      It does make positive moral when you have legal responsibility :) Thanks for answering.

  7. 2

    Congratulations on launching your first SaaS and identifying an opportunity for another one! It's always great to see entrepreneurs like yourself exploring new business opportunities.

    Regarding your legal question, it ultimately depends on your personal preference and specific circumstances. Here are some things to consider:

    Liability - If one of your SaaS products were to face legal issues, having them under separate companies could limit the potential impact on your other products. However, if you have adequate insurance coverage, this may not be a significant concern.

    Branding - If your SaaS products have distinct branding and target audiences, it may make more sense to have separate companies to avoid confusing customers or diluting your brand identity.

    Cost - Setting up a new company incurs additional costs such as legal fees and administrative expenses. Depending on the revenue potential of your new SaaS product, it may or may not be worth the added expense.

    In terms of how other founders run multiple SaaS products, there is no one-size-fits-all answer. Some choose to operate as a freelancer or sole proprietorship, while others set up a company. Those with multiple SaaS products may choose to run them under the same company or have separate companies for each product.

    Ultimately, the decision on how to structure your business should be based on your unique situation and goals. I recommend speaking with a lawyer or accountant to help you weigh the pros and cons and make an informed decision. Good luck with your new venture!

    1. 1

      For now there is no branding impact on the product so I guess I will run under one company. Thanks for replying, I appreciate it!

  8. 2

    Congratulations on launching your SaaS product and generating monthly recurring revenue (MRR)! Even if you consider it a tiny amount, we all start from somewhere..

    It's fantastic to hear that you're already considering scaling and expanding your offerings with another product.

    Regarding your question about legal considerations, it's imperative to weigh the pros and cons of running multiple SaaS products under the same company versus setting up a new company for each one.

    Although there are no one-size-fits-all answers, factors such as your risk tolerance, long-term goals, and financial and legal implications are worth considering.

    Personally, as an entrepreneur who runs a digital product and innovation studio, I've found it advantageous to create a separate company for each SaaS product that I launch.

    This approach provides more control and protection, as each product is its legal entity, and makes it easier to track the financials and performance of each product.

    However, it also means managing more complex and costly legal and financial considerations.

    Ultimately, whether to run multiple SaaS products under the same company or set up a new company for each one will depend on your specific situation and goals.

    I suggest consulting with a lawyer or accountant to determine the best approach for you.

    I wish you the best of luck with your SaaS ventures, and I look forward to hearing about your continued success!

    1. 1

      Thanks for taking time to reply, I wanted to open additional company but there is no point until revenue reach certain threshold. I can just run SaaS with my personal bank account as freelancers and when the things go better I can think of setting up a company. Thanks again for your answer I really appreciate it .

  9. 2

    It really depends, but my advice would usually be to do it in your existing company. Keep in mind that building a brand is really difficult. It is much easier to build one single brand with multiple products under it.

    One disadvantage however could be that people that are disappointed in one product also won't check other products

    1. 1

      I agree! Thanks for answering, I appreciate it!

  10. 2

    When you're small, it's really more about your personal preference. You could run all products through a single entity with a single bank account. That keeps things simple when you don't need much more, but know it can be more work later if one of the products grows larger and you need to treat it as its own entity with its own P&L.

    I am a little more OCD, so I tend to create a new legal entity with its own operating accounts and independent P&L once I feel like there's some traction with one of my efforts. But now I'm paying $200/year in LLC filing fees, $30/mo in quickbooks, etc... which may not be worth it for you.

    Just my experience - doesn't sound like you have anything driving your decision at the moment so might be best to err on the side of simplicity?

    1. 2

      Yes, that's what I am thinking now, it's pretty much the same for me around $200/year for LLC filings plus some additional fees, for now I can just do under the same company no need to increase the cost with another entity until revenue gets decent. I appreciate the answer.

  11. 2

    I have 1 legal registered company called HikeOrders.

    I run multiple products under my company.

    1. 1

      That's great to hear! Regarding invoices, do you use different logos for each company, or do you have a single logo for all products invoice?

      1. 1

        Invoice is from the company. So I use company logo on the invoice.

        My product logo and company logo are different.

        The invoice will have the product name in it. This makes the things very clear to customers.

    2. 1

      Thanks Sachin for your answer I think for now I will do the same, may I ask what are the preferable banks in India for startups and does the stripe support international transactions with all banks in India?

      1. 1

        You need to register a company in order to get current account in any bank.

        You can go for udyog aadhar or GST registration.

        Strip support any legal bank in India.

        Strip support international payment and then convert it to INR and then transfer to your bank

        1. 1

          That's awesome, I moved to Bengaluru recently, and I will explore all the possibilities here. Setting up company is a bit tricky since the government ask for 100k different legal documents but let's see...

          1. 1

            I am in Bengaluru as well. Udyog aadhar can be done in 10 minutes sitting at home.

            All you need is Aadhar card. I started my business with it. And now have GST registration

            1. 1

              The problem is I am not Indian citizen so I can not get Aadhar card. There is similar Aadhar card for foreigners but only for the ones employed here. My wife is working for MNC here and she got her foreigner Aadhar and PAN card with but I can not get any of those since I am not employed here.

              1. 1

                Humm. Then you will end up submitting lot of documents.

                1. 1

                  Well yeah, not much choice :)

  12. 1

    Prioritize: It's important to prioritize your SaaS products and focus on the ones that are most profitable or have the most potential for growth. This means allocating more resources, time, and attention to these products and considering consolidating or phasing out those that are not performing well.

  13. 1

    I'm surprised how many ppl are running multiple products for their SaaS

    Managing Evoke alone takes 3 co-founders!

    1. 1

      Running multiple SaaS products is not that difficult. But it depends how challenging is to develop, manage and market the product by yourself.

  14. 1

    You can run multiple startups and mostly you won't face any legal issues unless you have enough MRR to come to some tax bracket. Also mentioning your country will help better around legal advice.

    1. 1

      Thanks for replaying, my current company is virtually registered in US, I know for the tax threshold, but is it better to run multiple products under the same company or for each product it would be better to setup a new company?

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