Opportunity Zone Magazine Volume 1, Issue 3 - Page 12

12 OPPORTUNITY ZONE MAGAZINE | VOLUME 1 • ISSUE 3
HOW DO I START MY
OWN QOF?
By Matthew E. Rappaport
What to consider when launching personal and syndicated Qualified Opportunity Funds and how to stay
in compliance once you are in business.
In the midst of the excitement surrounding the Opportunity
Zone (OZ) program, the first question taxpayers often
ask after being educated about the basics is how to start a
Qualified Opportunity Fund (QOF). The acronym might
be a bit intimidating, but the process could be surprisingly
simple, depending on facts and circumstances. Nevertheless,
taxpayers should be cautioned to install the right group
of professionals to shepherd them through the process of
establishing a QOF, and communication among those
professionals will prevent mistakes and better ensure an
optimal outcome.
Let’s explore two varieties of QOFs: the “Personal QOF,”
in which between one and three taxpayers will contribute
substantial sums toward a project; and the “Syndicated QOF,”
in which a sponsor accepts capital from a sizable group of
investors.
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