- SPV Formation Guide
Create Your Delaware SPV Same Day, Not Weeks
Pool capital from multiple investors into a single Delaware Series. From formation and compliance to investor onboarding and K-1s, SPV Hub handles everything you need to get your deal closed.
- Delaware Series Formation
- Investor Onboarding & Accreditation
- KYC/AML Compliance
- Capital Call Management
- Annual K-1 Tax Reporting
- Ongoing SPV Administration
- The Basics
What is an SPV?
SPV stands for Special Purpose Vehicle, which is an instrument that pools capital from many sources together to create one investment fund. SPVs have been traditionally used for venture capital, private equity, start-up investing, real estate deals, and secondary stock purchases.
SPV Hub is organized as a Delaware Series, making it simple to invest in SAFEs, convertible notes, preferred equity rounds and other private market opportunities.
Instead of managing dozens of individual investors, founders receive one consolidated investment from the SPV. Investors benefit from an easy process to invest, while organizers are relieved from administrative work of handling paperwork and compliance related to the investments.
Most SPVs are formed as a Series Limited Liability Companies (LLCs), providing:
- Limited liability protection for investors
- Pass-through taxation
- Flexible governance structures
- Simplified fund administration
Why Delaware, Specifically?
Delaware is the preferred jurisdiction for investment vehicles in the United States because of its flexible business laws, established legal system, and widespread acceptance among investors and venture-backed companies.
Investor-Friendly Legal Framework: Delaware’s business laws are designed to support sophisticated investment structures.
Fast & Efficient Formation: Most SPVs can be formed quickly, allowing organizers to move on opportunities without unnecessary delays.
Widely Accepted by Venture-Backed Companies: Many startups, venture funds, and institutional investors already operate within Delaware’s legal framework.
Operational Flexibility: Delaware LLCs provide flexibility in governance, economics, and investor management.
Strong Legal Precedent: The Delaware Court of Chancery offers predictable and respected business rulings.
- The Process
How to Create an SPV in Five Simple Steps
Creating an SPV is simple when you have the right structure and guidance in place. Before diving into the process, the first step toward creating an SPV is to decide the type of legal structure you want to opt for. Most SPVs are formed as LLCs or LLPs because they offer flexibility, cost efficiency, and personal liability protection. Depending on your specific needs, an SPV can also be structured as a trust or partnership. Here’s how the process typically works.
Starts with details about your transactions, the nature of your business, financing needs and SPV structure.
You’ll typically submit:
- Organizer information
- Investment details
- Term sheet or SAFE documents
- Pitch deck
- Due diligence materials
After that, the SPV Hub team will validate the details you have provided and then draft the legal documents for electronic signing.
Once the first step is complete, SPV Hub will create your Delaware Series LLC.
This includes:
- Delaware filing
- Operating Agreement preparation
- Entity setup
- EIN application
- Compliance documentation
Most EIN applications are completed within 24 hours after formation.
Once the SPV is activated, you will be given access to your Organizer Dashboard.
From there you can:
- Review SPV details
- Invite investors
- Track commitments
- Send automated reminders
- Monitor fundraising progress
Investors will have a secure portal for document review, onboarding, and committing.
Monitor all fundraising activities from a single dashboard.
Track:
- Investor invitations
- Document completion
- Commitments received
- Funding status
- Outstanding tasks
Such clarity helps the organizer to know what’s going on at all times and helps them to make decisions when necessary.
Once the funds have been raised successfully, SPV Hub will make sure that the closure process is carried out.
This includes:
- Verification of signed investment documents
- Fund collection and reconciliation
- Transfer of capital to the portfolio company
- Closing documentation
- Blue Sky compliance filings
SPV Hub handles on-going administration, investor reporting, tax co-ordination and annual compliance post-closing.
- Use Cases
When Should You Create an SPV?
SPVs are commonly used across angel groups, family offices, venture capital, private equity, and alternative investments.
Build a Track Record
Emerging fund managers use SPVs to demonstrate investment performance before launching a traditional venture fund.
Exercise Pro-Rata Rights
Participate in follow-on rounds when your primary fund no longer has available capital.
Facilitate Co-Investments
Allow investors to participate in specific deals without committing to an entire fund.
Simplify Cap Tables
Consolidate multiple angel investors into a single entity on the company’s cap table.
Startup Investments
Aggregate investor capital into a dedicated SPV for startup investments, simplifying execution and cap table management.
Real Estate Investments
Isolate risk and ownership for individual properties or asset-based investments.
Warehouse Investments
Secure time-sensitive deals while raising a larger fund vehicle.
Purchase Secondary Shares
Pool capital to acquire existing shares from employees, founders, or early investors seeking liquidity.
International investors
Provide non-U.S. investors with a familiar, standardized legal structure for investing in U.S. opportunities.
- Cost Breakdown
Transparent SPV Pricing
Whether you’re investing with a small group of angel investors or managing a larger syndicate, we offer flexible pricing designed to match the complexity of your deal.
- Delaware filing fees
- Entity formation
- EIN registration
- Banking setup
- Blue Sky filings
- Fund administration
- Tax preparation and K-1 issuance
- Investor reporting and compliance
- Micro SPV
Lean structure for small syndicates and angel collectives.
- 6,000
Target raise
Up to $250k
Limited Partners
Up to 20 LPs
SPV lifespan
10 years
- Full platform access
- All compliance included
- Most popular
- Regular SPV
The most-used tier — built for venture rounds and seed-stage SPVs.
- 9,000
Target raise
Up to $1M
Limited Partners
Up to 40 LPs
SPV lifespan
10 years
- Full platform access
- All compliance included
- Standard SPV
Designed for institutional-scale deals with broader LP participation.
- 12,500
Target raise
$1M+ raise
Limited Partners
40 – 99 LPs
SPV lifespan
10 years
- Full platform access
- All compliance included
- Jurisdiction Comparison
Delaware vs. Other Jurisdictions
For venture investments, startup syndicates, and private deals, Delaware remains the industry standard due to its legal flexibility, predictable governance framework, and investor familiarity.
| Jurisdiction | Best For | Key Trade-off |
|---|---|---|
| Delaware | U.S. venture, PE, real estate | Gold standard; institutional LP acceptance; Court of Chancery |
| Wyoming LLC | Cost-conscious domestic structures | Lower fees (~$100 filing); less institutional acceptance; no equivalent court |
| Cayman Islands | Offshore LPs, non-U.S. investors, global funds | Tax-neutral; preferred by sovereign wealth funds; higher setup costs ($5K–$20K) |
| Nevada LLC | Rarely used for SPVs | Strong privacy laws; unfamiliar to most institutional LPs |
| Luxembourg / Ireland | European institutional raises | EU regulatory framework; required for EU fund passporting |
- BUILT FOR MODERN SPV MANAGEMENT
Why Use SPV Hub for Your Next Deal
SPV Hub combines legal formation, investor onboarding, compliance, and administration into a single platform so you can focus on sourcing and closing deals.
Faster Setup
Create and structure your SPV in one guided flow
Centralized Control
Manage investors, commitments, and documents in one place
Real-time Reporting
Track capital, activity, and updates as they happen
Built-in Compliance
Stay aligned with regulatory and reporting requirements
- COMPLIANCE-FIRST PLATFORM
Built with Compliance At The Core
SPVs operate within a defined regulatory framework. This affects how you raise capital and who can participate.
Reg D compliance
Structure your capitals raise correctly
Offering types
506(b) and 506(c) alignment
Investor checks
Accredited investor verification
Regulatory filling
Form D and required submissions
Our platform is designed to help organizers satisfy key administrative and compliance requirements while creating a seamless experience for investors.
- FAQs
Your Questions Answered
01. What are the first legal steps to set up an SPV?
When you plan SPV formation, the initial step is choosing a legal structure, typically an SPV LLC or LLP, to ensure liability protection and tax efficiency.
02. How does an SPV LLC differ from a Limited Partnership in Special Purpose Vehicle formation?
No. SPVHub does not charge a commission on the capital you raise.
03. Why is choosing the right state important for SPV formation?
No. Managers keep their economics.
04. What documents are essential when you set up SPV for capital raising?
No hidden platform commissions or percentage-based charges. Pricing is transparent upfront.
05. Can a non-resident easily set up an SPV LLC in the US?
Percentage-based pricing penalizes successful raises. Flat-fee pricing keeps costs predictable and aligned with founders and managers.
06. How does EIN acquisition fit into Special Purpose Vehicle formation?
Add-on services are operational events outside the core SPV structure—handled only when needed and priced transparently. From membership transfers to custom documentation and non-US investor support, SPVHub keeps complex SPV operations simple, flexible, and predictable.
07. How much does it cost to set up an SPV?
Add-on services are operational events outside the core SPV structure—handled only when needed and priced transparently. From membership transfers to custom documentation and non-US investor support, SPVHub keeps complex SPV operations simple, flexible, and predictable.
08. How many people can invest in an SPV?
Add-on services are operational events outside the core SPV structure—handled only when needed and priced transparently. From membership transfers to custom documentation and non-US investor support, SPVHub keeps complex SPV operations simple, flexible, and predictable.
09. Before I set up an SPV, do I need to have all of the investors confirmed?
Add-on services are operational events outside the core SPV structure—handled only when needed and priced transparently. From membership transfers to custom documentation and non-US investor support, SPVHub keeps complex SPV operations simple, flexible, and predictable.
Ready to Launch Your Next SPV?
Whether you’re leading a syndicate, investing alongside a venture fund, or raising capital for a single opportunity, SPV Hub provides the infrastructure to form, manage, and administer your SPV from start to finish.