Q: Q 1) is 5% a reasonable fee for me to charge? or am I asking for too much? Q 2) how do I remove my name from the biz?
my cousin has a restaurant business under my name. liquor license is under my name, and the food permit etc. For the first 2 years, I didn't charge him any thing for the benefit of this "favor" I did for him, being that he is unable to have a business under his name. Now im in year 3, and I want a percentage of his sales (5%) for this "favor" im providing currently at no cost. But he doesn't want to give me 5%, he will only give me a yearly bonus. Q 1) is 5% a reasonable fee for me to charge? or am I asking for too much? Q 2) if I wanted to remove my name from that biz, how do I go about it?
A: You have huge potential liabilities for this arrangement under the Labor Law, Liquor Law, and other statutes. Honestly, there is no amount of payment that would compensate for the risks you are taking. How are taxes paid? Is payroll up to date? These issues come with huge fines, penalties, and sometimes even criminal penalties. To have no control or information about the business is crazy.
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