That’s a smart move. Having a standard “Monthly Distribution Worksheet” ensures Joe, Jackie, and Gary are always on the same page and provides a clear paper trail for the 10% donation to the Jackie Kallen Foundation.
Here is a template you can copy into an Excel or Google Sheet to automate these calculations every month.
JK Knockout LLC: Monthly Distribution Worksheet
Period: [Month/Year]
Prepared By: [Name]
| Category | Description | Amount |
|---|---|---|
| Gross Revenue | Total sales, speaking fees, & merchandising | $0.00 |
| (-) Hard Costs | ||
| Product/COGS | Manufacturing, packaging, shipping | ($0.00) |
| Operating | Merchant fees (Stripe/Shopify), travel | ($0.00) |
| Overhead | Software, marketing, rent/storage | ($0.00) |
| Total Hard Costs | ($0.00) | |
| Net Profit | (Gross Revenue – Total Hard Costs) | $0.00 |
| (-) Foundation | 10% of Net Profit (to Jackie Kallen Foundation) | ($0.00) |
| Distributable Cash | (Net Profit – Foundation Donation) | $0.00 |
Member Payout Breakdown
Once the “Distributable Cash” is calculated, it is split according to your ownership percentages:
- Joe (40%): Distributable Cash \times 0.40
- Jackie (35%): Distributable Cash \times 0.35
- Gary (25%): Distributable Cash \times 0.25
Operating Tip: The “Hard Cost” Reserve
To keep the business healthy, I recommend the three of you agree on a “Minimum Operating Reserve.” For example, you might decide to always keep $2,000 in the bank account to cover next month’s software or shipping costs before paying yourselves. This prevents a situation where you distribute all the cash on Monday and have a bill due on Tuesday.