Guide on Acquisition Company or Fund Corporate Structure

Hi everyone! I'm really excited to join the SearchFunder community.

I've seen a lot of questions come up recently about entity selection for funds and acquisition companies, as well as s-corps (which is a tax election, not a type of entity). I thought it might be helpful to share a guide I created that's provides some higher level information about a few entity types that you can find here: https://drive.google.com/file/d/1TJgkKg7YfpWO4R2Xu_dKNE23gI1TEBcU/view?usp=sharing . Two entity types not included in the guide are series limited liability companies (very prevalent for fund formation) and benefit corporations. Let me know if it would be helpful to have a guide on those types of entities as well.

This is a good primer to get a sense of each entity type, but ultimately there are a lot of nuances that go into the selection decision. For example, LLC's must allocate 100% of their interests at all times whereas corporations may have stock set aside, authorized but unissued, for future endeavors (compensation, fundraising, etc.). So, I always recommend having a consultation with an attorney and accountant to make your final decision so the entity structure aligns with your current needs, future needs, exit plan, and tax strategy.

If you have any questions, please feel free to reach out at redacted and I'd be happy to provide a complimentary consultation.