Does my lawyer need to be licensed in the state where I buy a business?

by a professional from University of Minnesota - Twin Cities Campus

Dec 18,2020

I've heard it both ways from preliminary conversations with lawyers - some say they can't work outside a state where they are licensed, and others (some who I see comment on this site) are more than willing to work deals in any state. 

Should I wait to identify a target business, and then find a lawyer licensed in that same state, or should I establish a relationship now with a lawyer who is willing to work wherever I find a deal?

0 likes
82 views
10 comments

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

No you do not. You should work with an attorney that you are comfortable working with in whatever State. Competent counsel will then retain local counsel on specific business, State, and employee laws if/when needed during the APA review.

03/29/2022 | like reply | 0 likes

searcher from Northwestern University - Kellogg School of Management

As others have pointed out, a local attorney will be better equipped to spot issues specific to the locality’s law. If you are confident you have a strong local attorney, then he or she should be your first choice. But I would take a strong non-local lawyer over a mediocre local one as the strong non-local lawyer will do a better job mitigating your overall risk.

03/29/2022 | like reply | 0 likes

More on Searchfunder

What CRM systems would you suggest using for your search fund?

CRM recommendation

CRM

Checklist of due diligence items beyond LOI stage

Pool service routes and consolidation strategy

$200k equity partner desired for Inc. 5000 Acquisition

Acquiring the Land/Property with a Deal

Seeking cash flow lender for $7m add-on acquisition with $2m EBITDA

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.