What's the best state to register an LLC for a self-funded search?

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July 29, 2024

by a searcher from University of Texas at Austin in Dallas, TX, USA

A) Home State/State of Business Operation

B) Delaware

C) Wyoming

D) Other: List in the comments

What are the pros and cons of different states for asset protection (i.e., my primary home, 401k)? For taxes?

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Reply by a professional
from University of Michigan in Detroit, MI, USA
In general, if the seller company does business in only one state, organize the buyer LLC in that state. If you're purchasing a company that does business in multiple states, organize the LLC in a business friendly jurisdiction like Delaware. This assumes you're not taking on investors. As far as I am aware, TX is the only state with the homesteading exemption (which shields your primary home, if in TX, from a lender's collateral requirements).
commentor profile
Reply by a searcher
from University of Texas at Austin in Dallas, TX, USA
To take advantage of the TX homestead exemption, does the LLC have to be set up in Texas? Thanks for the response Hallam!
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