i am starting a business with a exit plan through merger or aquisition, which business structure should i use?

Lots of details exist for you to consider. Location is probably the biggest concern. Where you are in relation to your customers is a main concern. Your business form will be driven by that and other considerations.

You might find my Legal Guide "Small Business Start" helpful.

http://www.avvo.com/legal-guides/ugc/small-business-start

I have used this kind of advice for numerous successful clients and I truly hope some of these ideas are helpful to you as well.

Good luck to you. Good luck to your business. Here is hoping you see profits soon!!!

God bless. I am in Chicago and do not practice in your state.

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Depends on your business. Real estate is generally pursued through a partnership or LLC electing partnership status to maximize tax efficiency. Smal restaurants are better off using C Corp status if thir profits are less than $55,000. If your business is in a regulated industry you may not have a choice what business form you can use - the Regulator in your state has approved only a few legal entities.

Good luck.

Disclaimer: I am not your attorney and the information provided is for education purposes only. Our response does not create an attorney-client relationship.

If your primary concern is having an exit plan, it depends on whether you are starting the business with other people and the type of business you are starting. If you believe that there will be objections to the merger or acquisition, you need to anticipate that in your articles and bylaws.

In any event, there are many considerations other than an exit strategy that you should consider in forming the business, including taxes, liability and control.

You have gotten many wonderful answers and, by now, should understand that there are numerous factors to consider in selecting a business structure. Since your question focused specifically on the exit, it is important to understand that the type of entity can limit options at the time of exit. For example, in a merger, one of the deal structures that has favorable tax consequences for the seller is a structure that involves receiving stock in the acquiring company. Properly structured, there is no tax due at the time of the merger, any tax due would be payable whenever the acquiring company's stock is sold. However, if you are organized as an LLC, you will not be able to exchange an LLC interest for stock without incurring an immediate tax liability. On the other hand, an LLC may be better suited to an asset sale that would be a C corporation.

As a general rule, while it is laudable to be thinking about exit strategies, it is very difficult to determine which deal structure will be offered at the time of exit. You are better served to select the entity that fits the needs of you business now and address the exit when that opportunity arises.

Important. This answer is for informational purposes only and is not intended to refer to or to address particular circumstances faced by any individual or business. The statements in this answer are based on law existing at the time the answer was written and do not constitute legal advice or create an attorney-client relationship. anyone having concerns or issues such as those presented in the question should consult with legal counsel to address their own particular circumstances and the law applicable to their situation. Chorey, Taylor & Feil, A Professional Corporation, provides legal services only pursuant to written engagements specifying the services to be provided.