Should your search fund LLC be based in another state?

February 01, 2024

by a searcher from Georgia Institute of Technology in Seattle, WA, USA

Not sure where future acquired business will be based out of. I'm in Washington, but I've seen Delaware, Nevada, and Wyoming offer favorable tax benefits. Any recommendations on where to form LLC?

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Reply by a professional
from University of Michigan in Detroit, MI, USA

Hi ^redacted‌, we usually recommend Delaware unless there is a reason to organize somewhere else. The Divisions of Corporations is easy to work with, and everyone understands the legal landscape. This last point is important, since you'll be taking on investors and their lawyers will likely be most familiar with DE. That said, I'd be interested in hearing from others re. the relative tax advantages / disadvantages of going with DE versus other states such as WY.

Reply by a searcher
from Oklahoma State University in Wichita, KS, USA

Delaware has been a gold standard for years. For ~$300 you can get everything setup. I have used this firm before, makes it very easy. https://www.delawareinc.com/

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