Managing Multiple Legal Entities in Playtomic Manager

What is Multiple Legal Entity (MLE)?

Multiple Legal Entity (MLE) is a feature that allows your club to operate with more than one legal entity within a single Playtomic Manager account. This is especially useful if your club has different business structures, such as a commercial entity for court rentals and a non-profit entity for academy activities.

With MLE, you can:

• Add multiple billing profiles with different tax details
• Route specific products, categories, or courts to different legal entities
• Automatically apply the correct VAT/tax rates for each entity
• Send payouts to separate bank accounts through different Stripe connected accounts

Who Can Use MLE?

MLE is available for clubs that meet these requirements:

• Operating under the New Commission Model (NCM)
• Subscribed to the Champion Plan or higher

How to Set Up Multiple Legal Entities

Step 1: Access the Feature

Go to Billing→ Billing Information → Add Legal Entity in your Playtomic Manager.

Step 2: Create Each Legal Entity

For each legal entity, you'll need to provide:

Company Information:

• Company name - it must exactly match with the name associated with your tax ID number
• Email

Tax Information:

• Tax ID type
• VAT rules - each legal entity can have unique VAT rules. Playtomic will automatically apply the correct VAT based on your routing configuration

Company address:

• Address
• Country

Step 3: Connect Stripe Accounts

Each legal entity must have its own Stripe connected account to receive payouts. Once you have filled in the billing information for the new legal entity, you can connect a Stripe account in the next step.

Follow these steps:

1. Click on Add Stripe Account
2. You will be redirected to Stripe to enter all the required information
3. Complete the Stripe account setup with the legal entity's business information
4. Verify the bank account details where you want to receive payouts for this entity
5. Save the information in Stripe

Once the Stripe account is connected, you can proceed to configure revenue routing.

Step 4: Configure Revenue Routing

You can route revenue to different legal entities based on your configuration in Billing→ Payments Routing:

• Product Type: Court bookings, coaching sessions, memberships, store products, extras
• Category: Ideal for academies, partner programs, or sub-operators
• Court: Useful when different courts are owned or operated by different entities

⚠️Important Note: Leveling sessions have a special routing behavior. Although they are created and configured as public classes in Playtomic Manager, they are automatically routed as tournaments when it comes to payment processing. This means that if you have configured tournament revenue to route to a specific legal entity, your leveling sessions will follow that same routing rule, even though they appear as classes in your system. 

Step 5: Test Your Configuration

Once you've completed all the previous steps, the new legal entity is ready to use. It will start processing transactions immediately after configuration.

As a best practice, test your configuration with a sample transaction:

1. Create an online test booking
2. Check which Stripe account receives the payout
3. Generate an invoice and verify the VAT amount
4. Confirm the routing matches your expectations

You can also verify the status of your legal entity by accessing the Stripe connected account through the Payouts tab in Playtomic Manager.

Real-World Example

Club with Commercial and Academy Operations

A padel club runs court rentals as a commercial business and also offers a youth academy under a nonprofit entity with different tax treatment.

Setup:

• Commercial Entity → Court bookings (standard VAT)
• Nonprofit Entity → Junior Academy programs (reduced/exempt VAT)

Result: Revenue automatically splits to the correct bank account with proper tax treatment for each activity.

When Do Payments Get Split?

Once you configure MLE, payments are routed based on when the transaction is created. This means:

• New payments: All transactions created after configuration will be routed to the correct entity
• Pending payments: Transactions that were already created before MLE configuration will continue to be sent to the original entity

For example, if you configure MLE today, any bookings made from today onwards will be split according to your new configuration. Bookings made yesterday that haven't been paid out yet will still go to the original entity.

FAQ

• Can I configure MLE myself, or do I need Playtomic assistance?
  You can now configure MLE entirely from Playtomic Manager without needing Playtomic assistance. The feature is fully self-service for clubs that meet the requirements.
• When does a new legal entity become active?
  A new legal entity becomes active immediately after you complete its setup and create the routing configuration. Once you've entered all the required information, it will start processing transactions right away.
• Will I receive separate invoices for B2B commissions?
  Yes. Clubs with multiple legal entities will receive separate invoices per month for B2B commissions. In other words, once a month, a club that has set up another legal entity will receive one invoice for online payment commissions from entity A and another for entity B.
• Can I have more than two legal entities?
  Yes, while most clubs start with two entities, the system technically supports more.
• What happens to refunds?
  Refunds follow the original routing. If a payment was sent to Entity A, the refund will be processed from Entity A.
• Can I delete a legal entity once it has been created?
  At the moment, legal entities cannot be deleted once created. However, a legal entity will only process payments if routing is configured for it. If you created a second legal entity by mistake or no longer want to use it, simply don't configure any routing for it—or if routing already exists, redirect all items back to your default legal entity. This way, all payments will go through a single entity as if only one exists.

• Can I change my routing configuration later?
  Yes, you can modify your routing configuration at any time. Changes will apply to all new transactions created after the modification.

  Important: If you change the routing rule itself (for example, from routing by product to routing by courts), this will reset your current payment routing setup. You'll need to create a new setup based on the rule you select.

💬Need Help?

If you encounter any issues with MLE configuration, please do not hesitate to contact our Customer Care.

⚠️ Playtomic Customer Care cannot provide legal or tax advice. Please consult with your accountant or legal advisor to determine the best configuration for your specific situation.