Timing will depend upon several facts: how much time do the investors have to meet the required 180 days for example. Important is that the fund must be a QOF on or before the date it receives the investment.
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What is the best structure to create a boutique hotel project in an Opportunity Zone?
At what stage do I create a Qualified Opportunity Fund?
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The best structure to obtain opportunity zone benefits would be a two tier structure -- a qualified opportunity fund (QOF) holding an interest, with at least one other member, in a qualified opportunity zone business (QOZB). The timing of when the QOF is created depends on (i) when investors recognize the capital gain that they are seeking to invest and (ii) when the project needs to be funded. Ideally, you would generally create the QOF at least within 180 days of the occurrence of (i) and prior to the occurrence of (ii), but some additional structuring could make the deal work where this ideal situation is not possible.
Many options but an LLC structure would be easier than a Corp for ownership. If possible, create the QOF prior to acquiring the property so you can purchase the property in the name of the QOF.
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