How should I structure this? Maybe a dumb way to start a business with 45 people

[isobluesky]

A few friends of mine, totaling 5 people including me, want to start a restaurant and trying to get other 40 friends and family to join in.

The 5 of us are looking to be pouring the majority of the funds, let's say it requires $1 million to start, we will be funding $800,000 to start and any other additional cost in the future.
The other 40 of them will be pitching in $5,000 as a silent partner or whatever that should be called, which we wanted them to be able to join solely as beneficiaries, meaning they will get some profit sharing and no need to chip in for any future costs to run the business at all.

Since the legal side seems very complicating like we are crowdfunding and so no. We thought of asking them to "donate" the money into the business but it seems not very comfortling for some and we dont want that. We thought of asking them to sign a declaration of trust, but we are not sure how this is done.

Thanks for any advice!

[islandgirl]

This is a UK site so you won't get advice unfortunately but good luck with your venture!

[ostell]

So if was UK I would start a company and let the those interested purchase shares. . When you start making a profit then you start paying dividend on the shares.

In the UK you can start a company for a few pounds, I don't know the cost, or ease, of incorporation in the USA