The IRS classifies capital-raising SPVs as partnership tax returns. Partnership tax returns are a contingent requirement; they only need to be filed in the circumstance of a taxable event. When your SPV has a taxable event, you will need to prepare a form 1065, which you file with the federal government and with any states that are applicable for your entity. Filling out this form generates K1 forms for each of your participating investors. Step 12 requires expertise in Taxes and Accounting.
Capital-raising SPV tax returns are less complex than returns for startup companies. Still, there can be a seemingly endless barrage of rules and requirements—and alas, in your capacity as an organizer for an SPV entity will need to understand and comply with all of them!
Assure has developed its SPV service to anticipate every event and the corresponding requirements that are likely to arise throughout the life cycle of your capital-raising SPV, and to manage it effectively on your behalf and that of your stakeholders. In the happy event that it becomes necessary to file a return due to income from a capital-raising SPV, we have you covered.
Our next step is another contingent one: PREPARE AND DISTRIBUTE FINANCIALS FOR THE SPV.