How do I need to structure my LLC for it be qualified as a Qualified Opportunity Fund?

Answers

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  Marko Belej

  Taft

  July 01, 2021

  In order to be structured as a Qualified Opportunity Fund, an LLC needs only (i) to be treated as a corporation or a partnership for federal income tax purposes and (ii) to have a statement in its charter or operating agreement (or preferably both) stating its purpose of investing in qualified opportunity zone property and describing the qualified opportunity zone business in which it is engaged. In order to be treated as a corporation, the LLC would have to file a Form 8832 electing to treat it as such. In order to be treated as a partnership, the LLC would need to have at least two members.

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  Scott McIntosh

  Opportunity Zone Consulting Group

  July 12, 2021

  It must be a partnership or corporation organized for the purpose of investing at least 90% of its assets in Qualified Opportunity Zone property, and must self-certify as a Qualified Opportunity Fund (QOF) by filing IRS Form 8996 with the entity’s first tax return.

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