Are there downsides to setting up an LLC in my search state not Delaware?

by a searcher from Harvard University

3 years ago

I am starting a self-funded, geographically restricted search in the DC area (DC, Maryland, Virginia). I will be searching from DC itself. Two questions:

- Are there any downsides to not using a Delaware LLC? What I've read online is you often have to set up a foreign company in your search state if the LLC is external which just sounds like extra complexity
- Is the LLC I set up to search the same one that will purchase the company? This is relevant for me because DC taxes ~10% of district-based LLC profits

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14 comments

intermediary from University of Florida - Warrington College of Business Administration

^Searchfunder member‌ is absolutely right.

1 year ago | like reply | 0 likes

searcher from Rutgers-The State University of New Jersey-Newark/New Brunswick - Rutgers Business School

Definitely late to the game here, but curious as to perspective on a state to register in if your geo-agnostic in your self funded search? Sounds like Delaware might be overkill, but what about WY?

1 year ago | like reply | 0 likes

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