Opening a Business
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You and two of your college roommates have discussed plans to open a restaurant. You intend to attract college-age students who are health-and fitness-minded to your restaurant. You and your coowners agree that each will invest equally in terms of time and money. However, in addition to contributions made by each of you, another $700,000 is essential for the restaurant to succeed.
What type of organization is best suited for this business activity? Who will manage the restaurant during times that you and your coowners are not present? What liabilities do you and your coowners face?
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Solution Summary
The expert examines opening a business in college. The type of organizations which is best suited for business activity is determined.
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An LLC is probably best suited for this type of business. Depending on how much everyone puts into the pot, the voting power will be distributed based on that and the agreement made between the parties. The $700,000 could be taken as a loan or invested by a silent partner who would then have voting power as well. The benefit of an LLC is ...
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