Category Archives: Capital and Ownership

How Distributions and Profit & Loss Allocations are Taxed

Welcome to the second portion of restaurant capital and ownership series: How Distributions and Profit and Loss Allocations are Taxed! In Part I, Raising and Distributing Capital for Restaurant Startups, we discussed what capital is, how to read an operating agreement, and we walked through an example showing how capital is distributed among owners. In

Raising and Distributing Capital for Restaurant Startups

raising and distributing capital

This is part 1 of a 2-article series. Please check back to read our article on taxation of distributions and allocation of profits and losses. You are a restaurateur with a great idea for a restaurant and feel it is a cannot-miss investment opportunity. There are several different options to raise the capital you need

Incentivizing Restaurant Employees with Ownership Equity and Profits

If you have been in the restaurant industry for a while, you have probably heard some buzz about alternative pay structures for your managers and employees, such as granting ownership, equity, or deferred compensation. While these ideas might seem tempting to attract and retain good talent, figuring out the differences and tax consequences can be