Author Archives: Raffi Yousefian

Structuring a Restaurant Management Company and Fee

A restaurant management company separates your management team from the rest of your restaurant operations so that you can scale and grow safely and efficiently. A management company can: consolidate and streamline ownership of your managing/founding partners and leadership team; create an extra layer of liability; create economies of scale and buying power; streamline management,

Deducting NY and NYC Taxes Paid by Restaurateurs

Most New York restaurant owners cannot deduct their NYC and NYS taxes paid because they don’t itemize deductions for federal tax purposes. Even when they do itemize, their state and city deduction is limited to $10k, which is tiny compared to the state taxes a profitable restaurant owner pays. This can have devastating tax consequences

Guaranteed Payments vs Distributions

For many restaurant owners, guaranteed payments and distributions to owners may not come up until it’s time to file the annual tax returns. If you’re a restaurant client of The Forks CPAs, you’ll hear about guaranteed payments and distributions throughout the year because the distinction impacts your finances and taxes significantly. But what exactly are

Preparing for the Impact of Phased Out Bonus Depreciation

Since 2018, restaurants had the luxury of deducting 100% of their build-out expenses and other fixed asset purchases, such as equipment and furniture, by claiming bonus depreciation on their tax returns. Starting in 2023, restaurants will no longer have this luxury. Bonus depreciation will be phased out over the next four years to 80% in

Maximize Tax Savings For Your NYC Bar or Restaurant

From a tax perspective, is it more beneficial for restaurants and bars in New York City to set up their tax structure as a partnership or an S-corporation? Restaurateurs have received mixed messages from their CPAs over the years, especially after the Tax Cuts and Jobs Act (TCJA) introduced the Qualified Business Income (QBI) deduction,

Why Your Accountant Should Be Paying Your Bills

Managing bill payments is a tedious and time-consuming process, but is integral to a restaurant’s day to day operations. You already understand why bill pay is an extremely important process but may not fully understand the benefits of having your accountant involved like the national chains do. This article explains why your accountant should be

Determining Your Restaurant’s Cash Reserves and Working Capital Requirements

Cash Reserves Working Capital Requirement

A restaurant’s sustainability and growth potential are highly driven by its capitalization and the amount of liquid assets (like cash) that it retains. If a restaurant is not properly capitalized, its operations will be strained, vendors will not extend terms, and it will be unable to take advantage of growth opportunities. If a restaurant is