Hi all.
As I detailed in another thread, I'm trying to figure out how to structure my LLC so as to be appealing to investors. The question is, how to structure profit distributions to investors and founders, and whether those percentages should flip.
For example, Alarmist Brewing (formerly Panic Brewing) went with an 67%/33% split between investors and founders until the investors recouped their principal, at which point it would flip to 33%/67% investors/founders forever.
That is certainly one way to do it. Did others take a different approach? Would anyone mind sharing what they did?
Thanks,
James
As I detailed in another thread, I'm trying to figure out how to structure my LLC so as to be appealing to investors. The question is, how to structure profit distributions to investors and founders, and whether those percentages should flip.
For example, Alarmist Brewing (formerly Panic Brewing) went with an 67%/33% split between investors and founders until the investors recouped their principal, at which point it would flip to 33%/67% investors/founders forever.
That is certainly one way to do it. Did others take a different approach? Would anyone mind sharing what they did?
Thanks,
James
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