Pros and Cons of establishing and LLC during search phase

searcher profile

October 29, 2024

by a searcher from State University of New York College at Geneseo in Albuquerque, NM, USA

I would be curious to hear other peoples reasons behind choosing to set up an LLC before or during the search phase versus those to wait until closer to closing

Specifically interested in legal and financial aspects.

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Reply by a professional
from Bentley College in Miami, FL, USA
-- Liability Protection: Provides immediate liability protection if you engage in any formal activities, such as signing NDAs or LOIs.
-- Professionalism & Credibility: Operating as an LLC can help establish credibility with brokers, sellers, and lenders.
-- Business Expenses: Allows you to start tracking and potentially deduct certain expenses related to the search process.
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Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA
^redacted‌ have previously commented on Entities and LLCs and might be able to comment here.
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