You are just a few clicks away from Creating SPECIAL PURPOSE VEHICLES
A Special Purpose Vehicle or a syndicate is created with a specific purpose and comes with the key benefit of isolating financial risk. It is the most flexible investment-raising vehicle, and its efficiency and administration depend on its structure. Once you have finalized the structure and its documentation is over, your SPV is good to go. But, administering it is the key to extracting the full range of benefits. Talking about SPV administration, it is a critical job that can be performed only by SPV specialists.
Let’s understand it this way. Creating an SPV is like assembling a house. Once your house is ready you move into it. But that’s not the end. The house needs constant maintenance which is Administration in case of SPV to keep it fully functioning. Also, the bigger the structure of your house is, the higher it costs to maintain it. In the case of SPVs, the structure is determined by the legal documents. SPV Administration includes upkeep of the legal entity by following compliance, filing taxation and K1 forms, managing distribution of funds and annual reports, and much more.
At SPV Hub, our professionals will not only fulfill your structuring requirements but maintain the proper functioning of the structure as well. As compared to traditional fund administration, our SPV Specialists provide prompter output at a more affordable cost. Let’s understand how our Structuring and administering investment methods are different from traditional methods.
-- Setting up a Bank Account for SPV Entity
-- Inviting and getting investors on board
-- Wiring Funds
-- Drafting individual capital account statements
-- Forming Compliant Entity with Capitalization Table
-- Post Close Corporate Activities
SPV Hub offers creation and administrative services for Special Purpose Vehicles specifically used for Investment in a Startup.
SPV or Special Purpose Vehicles are legal entities (lacking physical existence) created with an intent to isolate financial risk and manage funds. SPVs, also known as Syndicates, have a particular purpose.
Delaware Series LLC is a unique business entity consisting of a Master LLC and more than one Series under the Master LLC. As per Delaware Limited Liability Company Act (DLLCA), formed in 1996, the LLC created under Delaware Divisions of Corporation doesn’t hold any predetermined structure and offers the benefits of limited liability and tax-friendly regimes to participating members.
SPV Hub is a customer-centric Special Purpose Vehicle Platform. What makes us stand out from our competitors is our particular focus on making the entire process of raising and deploying capital in a Startup effortless by appointing a dedicated account manager acting as a single point of communication for any query.
Our central thought behind the development of the SPV Hub platform is to simplify investment for both – Fund Managers and Investors.
The process of SPV Creation begins with choosing the legal structure and registering the Special Purpose Vehicle with the state officials. Acquainted investors choose LLC or LP as it comes with the benefit of limited liability. The state of the US has its own set of rules and regulations for the creation of SPVs. Presently, Delaware LLC offers the utmost flexibility and tax efficiency.
A Registered Agent acts as a representative of your SPV responsible to send and receive the legal documents on your behalf. While deciding the structure of the Legal Entity, the location of the entity is also decided. An SPV doesn’t require a physical office. Thus, it is advisable to register the entity in a tax-friendly state such as Delaware or Wyoming. Federal Law states that an LLC requires to nominate a registered agent resident of the selected state.
Till the second step, your SPV entity is just base. It is the third step when SPV Development actually begins. The documentation determines what your SPV stands for. Three essential pieces of documents specifying the direction of your Capital raising SPV are –
The set of the above-mentioned documents defines the behavior and actions. At SPV Hub, a professional legal team is appointed to draft the agreements meeting your requirements.
Employer Identification Number (EIN) is another essential document for setting up SPV. It is generally required for two events – to open a bank account for the entity (which is our next step) and to file taxes. Every investment is made with the motive of revenue generation. Whenever your Special Purpose Vehicle makes money, the taxation step gets into the role and mandates EIN. Further, after filing taxes the K1 forms are delivered to the investors.
Before proceeding with the asset purchase, all the funds must be placed at one point. This is where the bank account for your SPV is used. Opening a bank account for an SPV is not as uncomplicated as showing up at a branch with the basic documents. It should be considered, that not all banks hold the expertise of setting up and maintaining an account for a capital raising SPV. Once the documentation procedure for account opening is complete, your capital raising SPV is all set.
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