Transaction mechanics and LLC registration

searcher profile

June 23, 2021

by a searcher from New York University - Leonard N. Stern School of Business in New York City, NY, USA

Hi - Newbie searcher here. Trying to get all necessary paperwork done before engaging with potential targets. Question:

1) What is the best acquisition vehicle? Presuming most targets will be LLCs themselves so options I presume are to either acquire in name outright or to house within LLC. If the LLC is correct what's the best way to get one registered.


Open to others pieces of advice on what else is needed before engaging with prospective targets.

Appreciate the help - Rajiv

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commentor profile
Reply by a professional
from University of Denver in Denver, CO, USA
If you're interested, I'm hosting a Webinar tomorrow on entity structures when purchasing a business. All times are Mountain time.

Lunch & Learn Webinar (via Zoom):
“Purchasing a Business: Entity Structure & Strategies”

Wednesday, June 30
Presentation: Noon – 12:45 pm | Q&A 12:45 – 1:00 pm

Calling all entrepreneurs looking to buy a business! This in-depth discussion will go beyond a basic review of entity types. Attorney Trevor Crow will analyze the pros and cons of each as well as factors including the business’s growth plan, capitalization, financing strategies, as well as:

• Common mistakes to avoid
• How to handle raising money and investor influences on your entity
• Exit planning
• Tax advantages
• Reinvesting or distributions
• Personal guarantees

Grab your lunch and virtually join other entrepreneurs to learn more on this important topic. Attendees are highly encouraged to come prepared with questions for an interactive Q&A session following the presentation.

To register click here https://us02web.zoom.us/webinar/register/WN_8XmU8Mm1RFi3TqPnZeD-aA
commentor profile
Reply by a searcher
from Florida International University in Canton, MI, USA
Additionally, you can get help with the filings at the subscription legal sites (legalzoom, rocketlawyer, etc.). These will walk you through the process quickly and easily. Registering in Delaware is best for larger businesses/C-corps. Nevada and I believe Montana are friendly states for smaller businesses. There are lists that rank each state based on their friendliness so search for that information then analyze your state vs others to see where the best fit is for your needs.
If you file in a state other than your own you'll probably need a resident agent, so there's that cost to consider. Also, consider the overhead of maintaining multiple entities from an accounting standpoint.
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