San Jose, CA asked in Mergers & Acquisitions for California

Q: What type of corporate entity should I choose for my business to attract a buyout by an investor?

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1 Lawyer Answer
Jonathan R. Roth
Jonathan R. Roth
Answered

A: If you mean to have someone buy your business in total from you, the choice of entity is not that important since the Buyer is going to want to do an asset purchase. If you are talking about an investor buying into your business that is different and it will depend on both the kind and size of the investor. Generally, LLCs are used most often in early stages and then if you go public you convert into a corporation. Without knowing more details it is difficult to make a definitive recommendation. However, initially a LLC is probably your best option.

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