C-corp disclosure
December 08, 2022
by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA
I am looking to buy a business using a ROBS, which necessitates a C-corp. I am currently employed, and while I would leave my job to run the business I acquire full-time, I don't want my employer to know I'm considering business ownership until I'm ready to leave the company (so when diligence is very far along). I have a signed LOI, so the diligence process is getting underway. I believe merely setting up a C-corp during diligence won't trigger my employer's conflict of interest/outside business activities policies (since the C-corp wouldn't actually have any business activities going on until after the deal closes), but it's a bit of a grey area. If I start a C-corp today, is there any kind of public disclosure that could lead my employer to find out about the company beforehand? I'm just trying to balance discretion with the risk of questions getting asked in an uncomfortable setting, and also the risk of the deal falling apart. Thanks!
from Hofstra University in Melville, NY, USA
Or incorporate in a state like NV that has enhanced secrecy around who owns companies. You may also have to apply as a foreign entity to conduct business in your state as well, but that can be done later and through an appointed agent/attorney (Not you). Don't apply for your EIN until very late in the process.
from University of Akron in Charlotte, NC, USA