I have 3 SaaS products I want to run. Should I create one LLC per product? Or use a holding company with subsidiaries? Trying to figure out optimal structure for liability protection without going crazy on admin costs.
Common structures:
1. Single LLC: Simplest. All products in one entity. If one gets sued, all assets at risk. Fine if products are low-risk and you have good insurance.
2. Separate LLCs: Each product isolated. More admin, more state fees, separate bank accounts. Best liability protection.
3. Holding company + OpCos: Parent LLC owns subsidiary LLCs. Cleaner ownership, can share resources, but still separate liability. Most complex.
For 3 SaaS products at early stage, I usually recommend starting with one LLC and splitting later if one takes off.
I run 4 products under one LLC. Insurance is $2K/year for professional liability. Cost of maintaining 4 separate LLCs (registered agents, annual reports, tax filings, bank accounts) would be way more than my liability exposure. Keep it simple until you have real revenue.
tax consideration: multiple LLCs can mean multiple tax returns if they're not all owned by the same parent. holding company structure with disregarded entity subsidiaries can keep it to one return. talk to a CPA before deciding
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