When an SPV has fulfilled its purpose, it can be wound down or shut down. The steps required to wind down an SPV may vary depending on its structure and jurisdiction but generally follow a similar process. The basic steps to winding down an SPV include: 1) formally shutting down the entity according to its jurisdictional and structural requirements, 2) canceling any foreign qualifications, 3) terminating Registered Agent services, 4) preparing and filing a “Final” tax return, and 5) distributing “Final” K-1s to investors.
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