Learn what it takes to open an independent restaurant, and including the potential drawbacks and other expectations to those new in the industry.
Learn the benefits and drawbacks of running a restaurant as the sole proprietorship, or running a business as a single owner.
When opening a new restaurant, one of the things you will need to consider is your restaurant’s legal structure. There are four main types of legal structure, each of which has its benefits and drawbacks.
A corporation is the most complex legal structure a business can have. Most restaurants are not corporations from the start, but as the business grows, restaurant owners with multiple locations will incorporate to limit their liability and gain tax incentives.
Limited Liability Companies (LLCs) use some elements from partnerships and corporations to form a flexible taxation and management system. Start-up restaurants that are mid-sized or family owned are ideal for an LLC structure
Many small restaurants choose to organize as a partnership. This allows two or more people who want to open a restaurant to use their complementary skills and funds to get the business venture off the ground.
Starting a restaurant entails more than just putting some restaurant equipment in a building and selling food to the public. There are a lot of legal responsibilities that new restaurant owners need to take into account, as well.