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macaroniking69 t1_jdjmy34 wrote

Just curious - in a situation of the restaurant going into debt or a major lawsuit - are the empylowners still on the hook or are they basically having their cake and eating it too?

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Bradaigh t1_jdjr9xs wrote

It's almost definitely organized as some kind of limited liability company, which means that the employowners, like the rest of the owners, are on the hook in that if the business goes under their share of the company is worthless, but they're not personally liable for the debt of the company.

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djdjddhdhdh t1_jdkg9i2 wrote

Well that depends as most business owners in the beginning at least usually have to personally guarantee loans and credit lines. Although cafe has equipment they can use as collateral for the first loan maybe

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kiklion t1_jdlz809 wrote

The bigger risk is if their compensation is adjusted for the stock ownership they are getting. If they are being paid less than prevailing wages, to account for the value of stock ownership they are gaining, then it’s just forced investment.

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