5. The Operating Model¶
The entities are legally separate (each its own INC, EIN, books, bank accounts) but the engine runs across them through deliberate mechanics:
- Arm's-length B2B between entities. SEQ invoices STE per finished truck; CTP sells parts to SEQ; DET bills STE for hauls — all priced as normal vendor transactions, no intercompany transfer pricing.
- No consolidated reporting on dashboards. Each entity reports independently — own QB file, own data, own dashboard. (The affiliated group could file consolidated for tax under IRC §1504 — a CPA decision — but that doesn't change day-to-day independent reporting.)
- Build-cost recovery (SEQ → STR). Rental income on a unit recoups its build cost over time, so a truck that doesn't sell still earns.
- CTP as safety valve. Bad auction buys and teardown feedstock flow into CTP rather than becoming dead loss.
🟢 Confirmed — Operating mechanics
Separate EINs, arm's-length invoicing, no consolidated dashboard rollup.
🔴 Gap — Intercompany volumes
Actual intercompany volumes — how much SEQ invoices STE, CTP supplies SEQ, DET bills STE, etc. This is real money moving through the engine and it's currently undescribed; it's also what lets MC-ATG model the engine's internal economics.
Cross-entity mechanics — the supporting pages¶
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Entity Structure & Reasoning
Why each entity is its own corporation — deliberate isolation decisions (especially DET).
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Entity Classification
Profit centers vs cost centers — how each arm is classified for reporting.
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CTP as the Safety Valve
Why CTP exists as a separate entity — risk isolation in the parts ecosystem.
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SEQ → STR Build-Cost Recovery
How the rental fleet recoups the build cost of SEQ-fabricated trucks.
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Jeep Strategy
The coordinated SJB + TCR play (salvage rebuild + Turo fleet).
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Truck Acquisition Flow
End-to-end: auction → transport → dismantle/rebuild → STE finished inventory.
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AI Communication Architecture
The email-layer substrate — how the AI fleet handles inbound mail across domains.
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Persistent-Memory Architecture
How role-specific and shared memory work; per-project auto-memory; backup strategy.