I am starting a business in an Opportunity Zone. I see a lot of information on benefits of opportunity zones for investors but want to understand the benefits for entrepreneurs. Will my business qualify as an OZ business as I run my corporate headquarters in an OZ zone but contract manufacturing and contract warehouse goods outside? If I sell my business in 10 years, will I pay capital gains on the appreciation of the business? Are there any special considerations I should take into account given this type of business? The business is a branded personal care consumer goods business. The goods will be made at contract manufacturers (outside of the opportunity zone) and warehoused (outside of opportunity zone). Products will be shipped directly to customer and to retailers. Employees: The business will employ 3-4 people that will work approximately 65% of the time from the opportunity zone. The business will also have contract employees that work on a part-time hourly basis from home.
Unless you have your own deferred capital gain as a seed investment, becoming an OZ business makes it easier to raise capital. You'll open up the potential pool of investors to regular VCs and people who are looking to take that kind of risk when making an OZ investment. The business sounds like it will meet its compliance burden, so perhaps you should consider the idea further.
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