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. OPPORTUNITYZONE.COM