HBR mentions setting up an LLC for the search process, but that seems to be for a more traditional search fund. Buy Then Build doesn't mention it and, since the self-funded route is what I'm pursuing, I'm wondering if anyone has advice on the necessity of setting up an LLC for a self-funded search. I appreciate any advice.
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I'd rather enter into NDAs and LOIs as an LLC in the event those documents result in some kind of liability. Is it likely? Probably not. But is it possible? Yes.
All the comments about LLCs making you look like a PE firm (bad) or making you look professional (good) are well-taken, but ultimately I believe the initial impressions of a corporate entity are unimportant compared to the nature of the interactions with brokers/sellers.