> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tread.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Multi-Entity Billing

> When money flows between parent, leasing, and terminal entities — set up the right shares.

## When to use this

Use multi-entity billing when your business runs through more than one legal entity and money flows between them. Common with hauling groups that have a parent company, a separate leasing entity that owns the trucks, and one or more terminal child companies that operate locally. Every load runs at the terminal but the books eventually roll up to the parent.

## How it works

Tread models each legal entity as its own [company](/concepts/companies-hierarchy) (a separately-billed business unit). The parent sits at the top. Children — leasing entity, regional terminals — sit underneath in the [company hierarchy](/onboarding/company-hierarchy).

Money flows in three steps. The terminal bills the customer. The terminal pays the leasing entity for the truck. The leasing entity rolls earnings up to the parent. Each step is a real settlement that respects the entity boundary.

Drivers are shared across the hierarchy through **company shares**. A driver employed by the leasing entity can run loads at any terminal it shares into. The driver sees one app; the back-office sees the right entity on every settlement line.

## Setup

<Steps>
  <Step title="Create the parent entity">
    The parent is a top-level company. Set it up first under [Company Hierarchy](/onboarding/company-hierarchy) → **New parent**. The parent owns the hierarchy but rarely bills directly.
  </Step>

  <Step title="Create child entities under the parent">
    Add the leasing entity and each terminal as child companies. Each one gets its own customers, vendors, and accounting connection.
  </Step>

  <Step title="Share equipment from leasing into terminals">
    Settings → Equipment → **Share**. The leasing entity shares its trucks into each terminal that operates them. Without the share, the terminal can't dispatch the truck.
  </Step>

  <Step title="Share drivers across the hierarchy">
    Settings → Drivers → **Share**. Drivers employed by one entity get shared into the entities where they run loads. See [Driver Lifecycle](/concepts/driver-lifecycle).
  </Step>

  <Step title="Configure inter-entity rates">
    On the leasing entity, set the rate it bills each terminal for the truck. On the parent, set the rate the leasing entity rolls up. See [Manage Rates](/workflows/manage-rates).
  </Step>

  <Step title="Configure inter-entity rates">
    On the leasing entity, set the rate it bills each terminal for the truck. On the parent, set the rate the leasing entity rolls up. See [Manage Rates](/concepts/rates-add-ons).
  </Step>
</Steps>

## Common pitfalls

<Warning>
  **Setting up everything as one flat company.** A complex multi-entity hauler tried this and lost the ability to settle between entities. Books mixed, customer rates leaked across regions, and unwinding it took months.
</Warning>

<Warning>
  **Forgetting to share drivers down to the terminal.** A driver employed by the leasing entity won't appear in a terminal's dispatch board until shared. The terminal will assume the driver doesn't exist.
</Warning>

<Warning>
  **Mixing customer rates across entities.** Each entity sets its own rates. Confirm rate scope when copying customers between entities.
</Warning>

## Related

* [Companies & Hierarchy](/concepts/companies-hierarchy) — flat vs parent/child models
* [Company Hierarchy onboarding](/onboarding/company-hierarchy) — setup walkthrough
* [Driver Lifecycle](/concepts/driver-lifecycle) — sharing drivers across entities
* [Settlements & Driver Pay](/concepts/settlements-driver-pay) — settling between entities
* [Manage Rates](/concepts/rates-add-ons) — entity-scoped rate setup