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Overview: Anatomy of an SPV


AOTSPV_Webimages_Administration Outline-38

In this final step in managing an SPV, we shut or wind everything down correctly to remove additional involvement of the IRS, other state regulatory bodies, or private parties.

When the asset that the capital-raising SPV invested in has fully liquidated—whether through a successful exit or ignominious failure—the SPV has fully served its purpose, and we need to file our final tax return and shut down the entity. While mostly requiring SPV Administration expertise, this step mostly involves Taxes.


We need to tell the IRS that the entity has been dissolved, and that they should not expect to see any future returns. At the end of this process, every participating investor in our SPV receives a final K1 form.


In key respects, entity shut-down is similar to entity set-up. We fill out forms and pay all necessary fees. Once we have completed these tasks correctly, the entity is formally shut down. This is essential, as the need for the entity has completed its useful life. There is no longer a requirement for maintenance to be met. In addition, we want to remove potential for future harassment or liability from government entities or private parties.  

AOTSPV_Webimages_Step17 Molecule

This, then, is the anatomy of a capital-raising SPV.

Thank you for sharing this journey with us, and we hope to collaborate with you on many capital-raising SPV adventures in the years ahead!


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