An LLC can be a QOF as long as it is taxed as a partnership or a corporation (i.e., not a sole proprietorship/disregarded entity). The certification occurs through filing Form 8996 with the QOF's initial tax return.
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How does a corporation or partnership become certified as a Qualified Opportunity Fund?
Can a limited liability company (LLC) be an Opportunity Fund?
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In order for an entity (whether a corporation, partnership or LLC) to become a qualified opportunity fund (QOF), the entity needs to (i) be a regarded entity for tax purposes, (ii) have a statement in its charter or operating agreement stating its purpose of investing in qualified opportunity zone property and describing the qualified opportunity zone business in which it is engaged, (iii) meet the applicable 90% asset test on the testing dates and (iv) elect on Form 8996 to be treated as a QOF. Accordingly, an LLC may be a QOF, so long as it is not disregarded for tax purposes (i.e., it has at least two members or elects to be treated as a corporation).
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