There is no transfer required. Your LLC needs to file Form 8996 with its tax return to make the election, and you need to make sure the LLC complies with the requirements to be treated as a Qualified Opportunity Fund (QOF).
Ask A Question
How can I transfer my limited liability company to become a Qualified Opportunity Fund?
Answers
In order to make your existing limited liability company (LLC) a qualified opportunity fund (QOF), three things are needed. First, the LLC must meet the 90% test, i.e., 90% of its assets must be qualified opportunity zone property (QOZP) (taking the average percentage of assets on the sixth month-end and year-end of each year). Second, in its certificate of formation or operating agreement (or both, to be safe), the LLC must have a statement of its purpose of investing in QOZP and a description of the trade or business(es) in which the QOF is engaged. Third, the LLC must file a Form 8996 electing QOF status with its tax return for the year that it is intended to be a QOF. Please note that any interest that you acquired in the LLC before the month in which the LLC elected QOF status will not be an "eligible interest."
That would require a proper Operating Agreement, the LLC would have to acquire title to Property within an Opportunity Zone.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.