How do I start my own QOZB?

Answers

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  Matthew Rappaport

  Falcon Rappaport & Berkman

  June 30, 2020

  The businesses not eligible are the "sin businesses" listed in the statute; there are also businesses that are just impractical due to other statutory requirements (financial businesses, investment enterprises, triple-net leases of real estate, holding companies with intangibles, and the like). QOZBs have their own statutory and regulatory compliance regime, so you do need to make sure you follow the applicable rules, but starting a QOZB is just a matter of forming a tax corporation or tax partnership with the proper language in the organizing documents.

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  Guy Nicio

  Windes

  June 29, 2020

  Anyone can start their own fund, but it's a substantial financial commitment to the complex requirement. You will need an attorney to form the legal entity and a CPA, both of whom should be familiar with the OZ tax laws and compliance. The attorney will set up the legal entity ( a corporation, LLC, or partnership likely) and then you have to meet all the requirements，the primary one being that 90% of all of that entity's assets must be Qualified Opportunity Zone property located within one of the many zones in the country.

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  Maria De Los Angeles Rivera

  Kevane Grant Thornton

  July 06, 2020

  The process of creating your own fund is as easy as creating an entity, taxed as a corporation or partnership. The law expressly prohibits certain businesses described as sin businesses to be in the OZ program but there are others that due to certain requirements and limitations will not qualify, including the 5% financial assets limitation, the active trade or business requirement.

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