Single member QOF help

[James York]

I'm interested in investing in opportunity zones, but prefer to invest alone. Much of what I'm reading references partnerships and I've read that single member LLC can't be a QOF. Am I required to Involve someone else in my investment in order to qualify?

[Ashish Acharya]

Correct or you can elect S-corp. Be careful with S-Corp and Real estate. 

[James York]

Quote from @Ashish Acharya:

Correct or you can elect S-corp. Be careful with S-Corp and Real estate. 

@Ashish Acharya  am I confusing terms or do I actually need at least one other unrelated person involved? If so, do they need to be involved at a high level or do I just need “some” of their capital gains?

[Scott McIntosh]

@James York
A QOF must be a corporation or partnership — the IRS needs a regarded entity to be able to collect tax information about where QOF investment is flowing bad about compliance with the OZ investment requirements. 

Most of my clients who want a self-directed QOF create a simple husband-wife partnership, though you could do the same with a trusted friend or family member, too. The partnership does not need to be 50/50– it could be 99.9% and .1%, and both partners are not required to have capital gains. 

[Tom Shallcross]

Yes, exactly what @Scott McIntosh said. I am a single person LLC for my typical investments and for the LLC for our QOF my wife and I have that exact 99.9% .1% partnership.

[Gregg Klovens]

Yes. 

[Basit Siddiqi]

Look to see if you can find a partner who will be okay with a .01% interest.