Should a self-funded searcher register an LLC?

by a searcher from University of Cincinnati - Carl H. Lindner College of Business

3 years ago

Could somebody please help me understand the pros and cons of registering an LLC for a self-funded searcher?  

Also, what could be the possible impacts of searching without registering an LLC?

5 likes
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22 comments

professional from Walsh College of Accountancy and Business Administration

Entity choice is not a one size fits all approach. A lot of factors can influence the decision. I always recommend starting out the Search vehicle as a LLC taxed as a partnership and if it makes sense to be a C-Corporation once you find a Target, you can structure the acquisition to achieve the entity choice you need/want (after a thorough analysis) via a tax election or use of a C-Corporation acquisition vehicle.

3 years ago | like reply | 1 like

searcher from Stanford University - Graduate School of Business

Can anyone discuss the benefits of an LLC vs C-Corp? Trying to understand why startups use C-Corps, but Stanford Primer says to use and LLC for a Search Fund

3 years ago | like reply | 0 likes

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