Hello,
We're in the process of opening a restaurant with multiple investors. The investors received a portion of ownership in the new entity based on their investment amount. In addition, as part of the operating agreement, the investors initial cash contributions will be paid back in full from profits before non-cash ownership receives any share of the profits. All investors are silent and have no voting rights, but do own a majority of the company when their ownership percentage is combined.
My question is, how do I accurately set this up in Quickbooks to track each investors initial investment, as well as be able to track the payments back to them. Do I need to set up secondary Equity accounts for each investor under a parent account to track each investors cash contribution?
Any help would be appreciated. Thanks
