Basic points to consider while designing Model and DTO,

1. Entity (Model)

• Represents a database table (JPA @Entity).

• Should only exist in the persistence/data layer.

• Example: User, Enterprise

2. DTO (Data Transfer Object)

• Used to transfer data between layers or as a response payload.

• Exists in the API/controller layer.

• Example: UserDto, EnterpriseDto, UserReadModel, etc.

3. Service Layer

• Does the business logic and talks to repositories.

• Should ideally work with Entities/Models and maybe some internal DTOs.

• Should not know about UserReadModel or PostalCodeLocationModel if they are meant only for the controller.