Do I need a LLC as a Self-Funded Searcher
March 22, 2022
by a searcher from The George Washington University - School of Business in Washington, DC, USA
Do I need to set up a LLC as a self-funded searcher? Not entirely sure if this is necessary during the search process, but if I bring in investors for acquisition, I'm assuming I will need one then, so I might as well do it now? Is that accurate?
from Stanford University in Honolulu, HI, USA
* Legal for Small Deals: https://www.searchfunder.com/event/view/803 with ^redacted
* Nuts & Bolts: Session 2: Fund Organizational Structure: https://www.searchfunder.com/event/view/728 with ^redacted and ^redacted
* Entity Selection: Search Fund Structure and Target Entity Concerns with tax attorney ^redacted https://www.searchfunder.com/event/view/721
* Searchfunder Session: Dos & Don’ts for Search Funds: a Lawyer's Perspective with ^redacted: https://www.searchfunder.com/event/view/646
from University of California, San Diego in Los Angeles, CA, USA
It's also helpful from an operator standpoint to have an LLC ready to go when you close your deal. Ideally, you'd also set up a business checkings account (and if possible, even get a credit card with that bank account) -- this way you can hit the ground running with expenses with clean books.
Otherwise, you end up having to cover business expenses during your transition with either a personal card or another business's card, and have to do the annoying work of untangling expenses at some point.
I'm a big fan of wyomingagents.com for forming Wyoming LLCs, and mercury.com for business checkings. They both have easy online setups, and great interfaces once up and running.