Should I want to be included in this LLC for a cafe?

by soymilkmami. Posted on Sep 15, 2020    1    4

So about last month, I got linked to a friend of a friend who is opening a cafe in NYC. We spent a few weeks talking about the concept that's been in the works for over a year, and then I met his two business partners, and the vibe was great. Eventually, they asked me to hop on and create and run their kitchen program. The mission, design, and partners are honestly all I could ever hope for in working within the industry so I naturally and excitedly agreed.

Lease was signed far prior to me hopping on (each of the partners have invested their own money into it) and they plan on opening in late Fall once they complete their final round of funding. I initially and am not currently contractually obligated to anything. They're covering the costs for recipe testing but along with the owners/partners, I won't receive any type of compensation until space opens. Then as excited as I am about the opportunity there's of course that natural fear and apprehension from 1) Opening a cafe in NYC is extremely difficult 2) Opening a cafe in the middle of pandemic makings the first fact all the more complicated. I'm considering asking to be on contract for the time being as they already people on like an architect, brand strategist, and a photographer on contracts. I just feel like I'd have more security with my own contract for the work I'm doing prior to space actually opening.

But recently they were talking about writing me into their LLC. I honestly don't know much about LLC's but something about it makes me weary. Again, I think if we weren't in the middle of a pandemic, being apart of this would be a lot more "dreamy" but if something were to crumble, I don't know how liable I would want to be? I feel like having my own contract would be safer, but would there be any pros to being written into the LLC?



Attorney here. There is nothing inherently dangerous about being in an LLC as it gives you limited liability, but sometimes people write non-competes and other restrictive covenants into them that you should look out for. Be sure to read their operating agreement carefully. Highly recommend having an attorney assist with this as well.

gavion92 1

Also, if its an LLC creditors cannot come after your assets if you are a member.

nysrpatakemyenergy2 2
  1. Are you going to contribute any equity?
  2. How do they propose profits will be distributed if you become a member?
  3. Do you even want to be involved in this cafe long term, or just get paid to setup the kitchen?
  4. If the cafe opens, does poorly, and you don't get paid or get paid little for your work, how will you feel?
Zazenp 2

Are you an owner or employee?