Entity Structure

December 10, 2021

by a searcher from Lousiana State University in Houston, TX, USA

Should I create an LLC or another legal entity for my search? Due to my geographical constraints, I plan to do a hybrid search of funded/ self-funded, and I'm currently putting together typical marketing materials (website, brochure, industry thesis, etc.)

I assume I will need an entity eventually to raise the equity, debt and execute LOIs.

Can anyone provide guidance or direct me to articles on the topic?

Thanks!

Reply by a lender
from The University of Chicago in Schaumburg, IL, USA

I suggest that you consider a Delaware limited liability company. It is simple, fast and cheap ($250 or less if you do it yourself online). In addition, such an entity can (i) provide a bit of "corporate shield" protection for NDAs, IOIs and LOIs and (ii) add a touch of credibility to your marketing materials (e.g. XYZ Capital LLC instead of John Smith, searcher).

Reply by a searcher
from Stanford University in Los Angeles, CA, USA

I'm unable to give legal advice on this, but I can talk through some of the considerations as a searcher. Send me an email redacted

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