LLC Members Investor Payout Details & Payout Schedule

1. Payout Structure

A. Profit Distribution:

  • Profits will be distributed based on each investor’s ownership percentage in the LLC.

  • A portion of net profits (e.g., 40-50%) will be allocated for member payouts, while the remainder is reinvested for business growth.

  • Payouts will be calculated after deducting operational expenses, taxes, and reinvestment reserves.

B. Dividend Payments (if applicable):

  • If structured with dividend-like distributions, payouts will be based on revenue performance and company financials.

  • Dividend rates may vary depending on business growth, cash flow, and investor agreements.

C. Special Bonus Payouts:

  • Investors may receive additional payouts during high-profit periods, milestone achievements, or liquidity events (such as acquisitions).

2. Payout Schedule

A. Standard Quarterly Payouts (Every 3 Months):

  • Payout Dates: E.g. March 31st, June 30th, September 30th, December 31st.

  • Calculation: Net profit for the quarter is assessed, and investor distributions are made accordingly.

B. Annual Profit Distributions:

  • Payout Date: January 31st of the following year.

  • Calculation: A full-year financial review determines annual profit-sharing amounts.

C. Exit & Liquidity Event Payouts (if applicable):

  • If the Tony Brands is acquired, merges, or company shutdown, investors will receive a payout based on their ownership stake.

  • Structured buyouts or profit-sharing plans will determine the final distribution.

3. Payout Methods

  • Direct Bank Transfer (ACH/Wire)

  • Check Payments (if requested)

  • Digital Payment Platforms (if applicable)

4. Reinvestment Option

  • Investor members may opt to reinvest their earnings into the Tony Brands for future growth and increased equity.

5. Tax Considerations

  • All investors will receive K-1 tax forms for reporting their share of Tony Brands LLC’s profits.

  • Taxes on distributions are subject to federal and state regulations.