Should a self-funded searcher register an LLC?

searcher profile

December 21, 2020

by a searcher from University of Cincinnati - Carl H. Lindner College of Business in Bear, DE, USA

Could somebody please help me understand the pros and cons of registering an LLC for a self-funded searcher?

Also, what could be the possible impacts of searching without registering an LLC?

5
22
467
Replies
22
commentor profile
Reply by a searcher
from Dartmouth College in Richmond, VA, USA
Also "Limit Liability" for all things - when you sign an NDA, etc.
commentor profile
Reply by a professional
from Walsh College of Accountancy and Business Administration in Detroit, MI, USA
Entity choice is not a one size fits all approach. A lot of factors can influence the decision. I always recommend starting out the Search vehicle as a LLC taxed as a partnership and if it makes sense to be a C-Corporation once you find a Target, you can structure the acquisition to achieve the entity choice you need/want (after a thorough analysis) via a tax election or use of a C-Corporation acquisition vehicle.
commentor profile
+20 more replies.
Join the discussion