It is required to register the fund (while researching) as a LLC/LTD?

searcher profile

March 26, 2019

by a searcher from INSEAD in São Paulo, State of São Paulo, Brazil

I mean, it is possible to raise the funds for the research phase without a legal constitution in US or investors don't operate this way? If possible, it saves a lot of money...

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Reply by an admin
from Stanford University in Honolulu, HI, USA
^redacted‌ mentioned in his interview that it’s never too early to reach out to an attorney to get set up. Most lawyers will spend some time with you for free before beginning to charge you. Here’s his interview:
* Top Legal Issues Searchers Face https://www.searchfunder.com/article/viewarticle/1041.

Here are some other posts that may be of interest:
* Necessary Legal Entities for the Search Fund https://www.searchfunder.com/article/viewarticle/2956
* Legal Structure of a Search Fund https://www.searchfunder.com/article/viewarticle/3483
* What is the Typical Budget Range for Total Legal Costs https://www.searchfunder.com/article/viewarticle/3224
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Reply by a searcher
from Harvard University in New York, NY, USA
Yea are you talking about setting up the LLC or registering with SEC? The former is super simple and cost is minimal. I did it myself in NY State for <$400. For the latter, unless you are planning on a large fundraise with multiple outside investors, it is wholly unnecessary.
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