Do I need a LLC as a Self-Funded Searcher

searcher profile

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?

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commentor profile
Reply by an admin
from Stanford University in Honolulu, HI, USA
In addition to the guidance received here, please see these live streams:

* 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 ^redactedhttps://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
commentor profile
Reply by a professional
from University of California, San Diego in Los Angeles, CA, USA
A slightly different take:

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.
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