LLC Formation during LOI process

June 06, 2025
by a searcher from Carleton University in Nepean, Ottawa, Ontario, Canada
I'm in the process of submitting an LOI and was wondering if it's common (and acceptable) to reference a "to-be-formed" LLC in the LOI, and only go ahead with forming the legal entity after the LOI is accepted and due diligence begins?
My thinking is that waiting would avoid unnecessary administrative work and filing costs in case the deal doesn't move forward. But I want to be sure this won’t raise red flags with the seller or create any legal complications later.
from Pace University in New York, NY, USA
from DePaul University in Detroit, MI, USA