The title "Maintain the SPV Entity" is highly descriptive; if we don’t take discrete steps, our entity will actually be shut down. SPV managers must maintain the entity through the payment of annual fees. Period. Hard stop. This step is a simple one, but the consequences for not getting it done are draconian. If SPV organizers let this one go, SPV stakeholders are subject to hefty fines. The entity will be shut down, and participating members may be prevented from participating in some future business deals. Entity maintenance requires SPV Administration expertise.
How simple is this step? Partnerships in Delaware are required to pay an annual fee of $300; there is no requirement to submit an annual report. Requirements differ in other state venues. In New York, for example, LLCs LPs, C-corps and S-corps must all file annual reports with the Secretary of State, regardless of how big or small the organization is.
As with every step throughout the SPV life cycle, the Assure SPV service takes the guesswork and headache out of your entity’s administrative, compliance, legal, tax, and accounting requirements.
Now that you have paid the fees and (when necessary) filed reports and other paperwork, you can move on to STEP 16: COLLECT AND SEND OUT DISTRIBUTIONS TO YOUR INVESTORS--with confidence that your entity will continue its productive life.