Every QOF should set up a QOZB. Failure to do so forfeits the distinct advantage of utilizing a working capital safe harbor.
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How can a Qualified Opportunity Fund establish a Qualified Opportunity Zone Business and the QOF then invest in the QOZB?
What is the advantage in this scenario? What happens with the compliance requirements?
Answers
Compliance gets easier and smoother. We use two-tiered structures whenever we're able to plan from the beginning. You simply need to form two entities and meet the compliance requirements for both, which is not that difficult if you're advised by the proper professionals.
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