Introduction
New motorcycle and electric scooter brands are scaling globally faster than ever. Yet many founders lock themselves into a single-entity structure that creates heavy tax bills, exposes personal assets to lawsuits, and scares off investors. A smarter, more protective structure exists.
A two-wheeler company’s structure controls three critical levers:
- How much tax you pay and where.
- How easy it is to open subsidiaries abroad.
- How well you shield founders, directors, and assets from legal claims.
Failing to plan these factors up front can cost millions and slow expansion.
Who Is This For?
This guide is for founders, CFOs, and investors in the motorcycle, e-bike, and scooter space who want to minimise tax, protect their team, and expand internationally with confidence.
Insights & Analysis
- Global EV motorcycle market projected to grow 8x by 2030.
- Early adoption of multi-entity and holding company strategies correlates with faster capital raises and lower effective tax rates.
The Kelstron Framework
Kelstron guides mobility startups through a two-tier approach:
Foundational Entity (LLC, C-Corp or S-Corp)
- Gives limited liability, credibility with suppliers, and investor readiness.
Advanced Structure (Asset Segmentation & International Holding)
- Parent Company holds IP and brand.
- Subsidiary LLC 1 handles manufacturing or distribution (risk isolated).
- Subsidiary LLC 2 manages customer-facing operations.
- International Holding Company sits above or alongside the parent to optimise global tax and ease cross-border expansion.
Diagram: “Tax-Efficient & Risk-Protected Structure for Two-Wheeler Startups.”
Case Study
A premium e-motorcycle startup used Kelstron’s structure to:
- Move IP into a parent company, limiting exposure.
- Launch an EU subsidiary for distribution with local VAT compliance.
- Cut effective global tax rate by 18% while raising $7M Series A.
- Shield founders’ personal assets from potential product-liability suits.
Practical Takeaways
- Segment risk: separate IP, manufacturing, and customer operations into different entities.
- Use a holding company in a favourable jurisdiction to simplify international expansion.
- Build the structure before major funding rounds; it reduces investor friction.
- Consider directors’ and officers’ liability coverage as part of the plan.
- Keep governance and transfer-pricing documentation clean for audits.
Conclusion
At Kelstron, we’ve helped two-wheeler companies design tax-efficient, investor-ready structures that protect their people and assets while enabling global growth. If you’re planning to scale beyond your home market, we can guide you.