LLC as Opportunity Fund - Pros and Cons ?
Hi All,
Back in February of this year, I purchased a rental home in an Opportunity Zone. I had been reading about Opportunity Zones at the time and understood that they would drive investment into the area and create a good opportunity. I didn't use any funds from a previous investment, but I deed the property into a sole proprietor LLC, specifically set up for this property. I understand from reading the FAQ on the IRS's website that " A LLC that chooses to be treated either as a partnership or corporation for federal tax purposes can organize as a Qualified Opportunity Fund ", however, I'm wondering if I should go forward with that filing strategy?
I'd appreciate any insight here and perhaps pros/cons of being treated either as a partnership or corporation for federal taxes in my scenario.
Thanks!