New LLC (local bar) with two members, no salary, but tips. How are they recorded?
We are working on a new LLC and will be owning a local bar. The two owners will be the only workers at the start (no employees) and will not be drawing a salary until profitability. How are tips handled in this situation? Are they recorded as income for the business (bar) or as individual additional income on tax records? These would include charged and cash tips.