Articles
Nathaniel Dodson On
A Recipe for Syndication Success: CROWDFUNDINGLAWYERS
Recipe for Syndication Success: A Proven Strategy Embarking on a syndication venture is similar to crafting a gourmet dish. Both require precise ingredients, meticulous preparation, and expert execution. At Crowdfunding Lawyers, we provide a Recipe for Syndication Success that ensures your investment journey is smooth and profitable. Understand that it takes time to raise money….
Nathaniel Dodson On
Can You Pay Someone to Raise Money for You?
If someone comes to you and offers to help you raise money in exchange for a commission but they do NOT have a broker-dealer license, that is a huge NO-NO and can lead to liability not just for the unlicensed broker-dealer but for you as the issuer as well.
Nathaniel Dodson On
Tax Benefits for Investors in Qualified Opportunity Funds
The Tax Cuts and Jobs Act: Creating Qualified Opportunity Funds (QOF) First, any investor who invests capital gains in a QOF, may delay paying taxes on those capital gains until December 31, 2026 or until the investment is sold. Second, if an investor leaves its capital gains invested in a QOF for at least five…
Nathaniel Dodson On
In What State Should I Form My Entity?
I recently had a client that specifically asked me to form their entity in Nevada instead of the state where the property they were syndicating was located. Their reasoning was that Nevada had the best laws for entities like limited liability companies. Is that really true? And if so, does it really matter? If you…
Nathaniel Dodson On
QUALIFIED OPPORTUNITY ZONES – FAQ
What is a Qualified Opportunity Zone? The Tax Cuts and Jobs Act of 2017 created Qualified Opportunity Zones, which are economically-distressed areas designated by the government that provide certain tax benefits to investors in an effort to spur economic development and job creation. (See also https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions) Where are Qualified Opportunity Zones located? A map of…
Nathaniel Dodson On
Creating and Maintaining Qualified Opportunity Funds
In order to create a Qualified Opportunity Fund (QOF), a partnership or corporation (or limited liability company taxed as a partnership or corporation) must file Form 8996 to self-certify with the IRS. Further, the entity must be set up with the sole purpose of operating as a QOF, which may be stated in the organizational…