Investing in a Bar

[dmosk4]

What is the name of your state (only U.S. law)? DE


My friend and I are looking to invest 5% (5k) each in a start-up bar to help out a friend and possibly make some $ over time. What I'm worried about is liability. Would I have unlimited liability for my 5% investment if something happens?

 

[Mass_Shyster]

Very possibly.

 

[xylene]

I think if you have that much spare cash to put into a highly speculative venture high risk venture than you should get a lawyer to review exactly how the business will be structured to give you an exact answer.

If no, you should consider a more closed-end investment for your $5k.

In my humble opinion and experience, investing in a friends' bar, unless you have a lot of tavern-keeping experience yourself, is a terrible idea born of alcohol clouded thinking.

 

[Hot Topic]

"Possibly" make some money? That doesn't sound like you have much faith in the venture.

Helping out a friend will quickly make him or her a non-friend.