When to Stop Paying per Seat
How to run the break-even between per-seat software and a custom build.
Paying for software to be built does not automatically make you its owner. What you own depends on what the contract says and how the project is set up. Here is what to check, so the code, the data, and the accounts are actually yours.
Updated September 2026 · Stephen Backholm, Founder
In the United States, code written by an independent contractor generally belongs to the contractor unless a written agreement transfers it to you. That surprises many businesses, which assume that paying for the work settles the question.
The practical answer is simple: make ownership explicit in writing, and set the project up so the code and accounts are in your hands from day one.
This is general information, not legal advice. Have your attorney review any software development agreement before you sign it.
Ownership on paper means little if you cannot reach the software. Check that:
If you own the code, the data, and the accounts, and the software is built on widely known technology, parting ways is an inconvenience rather than a crisis. Any competent developer can pick up the application and keep going.
At True Cedar, you own the source code, the data, and the infrastructure accounts in every engagement. The code lives in a repository you control, and we build on mainstream technology such as React, Next.js, TypeScript, and PostgreSQL precisely so that it can be maintained by anyone. There is no license and no platform lock-in.
True Cedar figures and commitments here are examples to help you plan, not a quote, an offer, or a contract. Every engagement is governed by its own written statement of work and agreement.
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Tell us what you need built. We will show you exactly what you will own at the end of it.