My husband and I (both long term restaurant professionals- Executive Chefs & GMs) are looking to go into business with a couple of partners who already have an established successful restaurant that I work at.
We would be investing about $15-20K upfront and are looking to define sweat equity and consulting services. Since we won't just be investors, we will be involved in the day to day operations of getting this place launched, we want to know what $ amount to put on our services. Menu design, costing, recipe books, SOPs, the list goes on and on. We would also be doing staff training, POS programming and ongoing support with operations including marketing, specials, on going training, hiring and other human resource types of things once the business is open.
The sweat equity we are thinking of is me taking a pay cut at my current job (about $20K cut) and putting that money towards this new location. How would that type of investment be tracked? How are investors paid out? Any thoughts would be great appreciated. BTW the company would be an S corp, so any feelings on that vs an LLC would be great as well. Thanks!