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1. Engage a Hedge Fund Attorney. 
We suggest that you engage an experienced hedge fund attorney and that you know exactly who will advise you and develop your hedge fund business plan. You should be able to reach that attorney by telephone, email, Skype.com, etc.  Click Here for a Free Consult with a Hedge Fund Attorney   We suggest that you avoid boiler room "service aggregators" (typically brokers and other non-lawyers) who aggressively sell you a bundle of hedge fund services (capital introduction, hedge fund marketing materials, hedge fund web sites, hedge fund administration services, brokerage services, accounting services, and legal services) and then "farm" the various services out to whoever they can find to do the work for the lowest price.  Usually they are taking a percentage of the professional fees (your money) while doing very little work and originates from the "pump and dump" strategy used by brokers to sell stock.  If you have gotten this far on your own as a trader, you are smart enough to shop around for other services providers.  A good hedge fund lawyer can and will make suitable introductions to you upon request.  Click Here to Learn About Hannah Terhune, Attorney

2. Determine Hedge Fund Launch Date.
Assuming no registration is required, in the United States, you should be able to launch your hedge fund in 3-4 weeks.

3. Track Hedge Fund Development Process Costs.
Some of the costs may be deductible, either as a current or deferred tax expense.  Learn More About Hedge Fund Tax Issues

4. Evaluate Investment Adviser Licensing and Registration Requirements. 
Determine whether you must register as investment adviser with the SEC, your home state, and/or the NFA.    If you trade forex or managed futures in your hedge fund, you must register with the NFA.  Learn More About Commodity Pools and Forex Trading  In those states where the hedge fund manager must register as an investment adviser, the Series 65 is required, unless the state is satisfied with some other credential such as a Certified Financial Planner license.  Many states require that you register as an investment adviser.  You may choose to register as an investment adviser even if not required to do so by your home state.  Learn More About Our  Investment Adviser Registration Services.

5. Define the Terms of the Hedge Fund.
 You are creating a unique financial product. Complete the Hedge Fund Terms Sheet we provide you. We identify, define, and provide examples of the core elements of a hedge fund based on our experience.  Based on the this work sheet you should be able to understand, evaluate and then define your hedge fund.  Core elements include the hedge fund's investment objective, investment strategies, management team  biographical data, hedge fund performance fees, hedge fund management fees, hedge fund redemption, hedge fund lock-ups, hedge fund risk disclosures, etc.  Contact Us for a Hedge Fund Term Sheet Questionnaire

6. Form the Hedge Fund and its Investment Manager. 
To start a hedge fund you need to create the fund entity and its investment management company.  In the United States, the hedge fund is established as a limited partnership and in some cases, as a limited liability company for offerings with multiple share classes.  Learn More About Incubator Hedge Funds and Learn More About Starting a Hedge Fund    Your hedge fund management company can be set up in your  home state.  If you do not plan to stay in your home state, we then suggest Wyoming or Delaware as the best location for the hedge fund's investment manager/general partner. Click Here to Form a Wyoming or Delaware Company

7. Obtain IRS Tax Identification Numbers. 
We prepare and file IRS forms to obtain the Employer ID Numbers (EIN) for the hedge fund and the hedge fund manager from the IRS. You will need these tax identification numbers to open the hedge fund's bank and brokerage accounts.

8. Investment Adviser Registration. 
If you need to register as an investment adviser, start the registration process.  This process should start concurrently with the development of the hedge fund as the investment adviser registration process can take a few months in some states.  You should sign up for the Series 65 examination unless your state accepts an equivalent certification or credential. Obtain study materials and pass the Series 65 Exam.  You must complete any state registration application forms.  Learn About Investment Adviser Registration

9. Forex Trading.
If your hedge fund will also trade in spot forex, your fund is also a forex pool.   You need to start the process of becoming a member of the NFA.   Learn More About Forex Funds and NFA Registration
 
10. Commodity Trading.
If your hedge fund will also trade in futures contracts, commodity options (including options on futures contracts), leverage contracts involving certain precious metals, futures contacts and commodity options traded on a board of trade, or foreign futures and foreign options, your fund is also a commodity pool.  Unless you operate an exempt commodity pool, you will need to register as a commodity pool operator with the NFA.  You must take the Series 3 Exam and start the process of becoming a member of the NFA.   Learn More About Commodity Pools and NFA Registration
 
11. Review First Draft of Offering Documents. 
We will send you a first draft of the offering documents which includes a  private placement memorandum, a limited partnership agreement for the hedge fund, and a subscription agreement.  Perform a very thorough review of the first draft of your offering documents.  Ask us questions to make sure you understand all aspects of your hedge fund as defined in the offering documents and make sure your offering documents accurately reflect what you plan to with investor money.   Learn More About Hedge Fund Offering Documents

12. Review Second Draft of Offering Documents. 
 Based on our discussions with you, we will revise the offering documents and we ask that you timely respond to our inquiries regarding regulatory questions and any outstanding Terms Sheet items.  We will send you a second draft of your offering documents.  Again, perform a very thorough review of the offering documents.  Ask us questions to make sure you understand all aspects of your hedge fund as defined in the offering documents and make sure your offering documents accurately reflect what you plan to with investor money.

13. SEC Form D and other Blue Sky Filings. 
In the United States, a notice of sale on Form D must be filed by the issuer in connection with any offering under Regulation D. SEC Form D is filed electronically with the SEC and Form U-2 is filed for the hedge fund in most states.  We prepare and file SEC Form D for the hedge fund and the blue sky filings for the states where you expect to distribute your offering documents and accept investors.   Learn About Hedge Fund SEC Filings

14. Finalize Offering Documents.
Take your offering documents to a copy store (e.g., Kinko's, Staples, etc.) and have it printed and bound.  Consider the image you wish your fund to project when choosing the printing materials and binding method.  Once the offering documents are finalized, you are now in a position to find a suitable bank, broker, administrator and auditor for the hedge fund.  You will not be able to obtain a solid fee proposal and obtain a consent letter from an administrator or auditor until they  have reviewed your offering documents. If you obtain a fee quote in advance, you are not getting a firm quote and you will experience sticker shock then they start to bill you.

15. Brokers and Introducing Brokers.
Open the hedge fund's brokerage account and bank trust account.  The hedge fund will need both. Investor subscriptions should be deposited in the hedge fund's bank trust account and then transferred to the fund's brokerage account. Investor money should not be sent directly to the hedge fund's brokerage account as institutional brokerage accounts do not  accept third party monies. If your broker offers to do, do not work with that broker!  You do not need to use a prime broker or an introducing broker.  Nearly all small hedge funds start out with retail online brokers.

16. Finalize Regulatory Licenses Registrations.
If you registered as an Investment Advisor or with the NFA as a Commodity Pool Operator, ensure that the regulators have approved any such applications.

17. Hedge Fund Marketing and Sales.
Deposit your seed capital and start the initial trading of the fund. Start distributing your hedge fund offering documents and attracting investors.  Keep a log of all individuals to whom you distribute your hedge fund offering documents.  We provide you with a form you can use for this purpose.  You can use a web site that is SEC compliant to administer the hedge fund.  You cannot use the web site to market the hedge fund and find investors. You cannot advertise to the public.
 
18. Stay Current with Blue Sky Filings. 
File your blue sky filings within the appropriate time -- either before distribution or within 15 days of the first sale in that state, depending on the state's rules.

19. Hedge Fund Administration. 
Many clients are accustomed to being a one-person business, trading from their home office.  You do not need to hire an administrator to start a small fund, although it is a good idea if you do not have time to deal with hedge fund accounting.  Hedge fund administrators provide fund accounting services, including net asset calculations, fee calculations and general administrative support (back office services).  If you are going to handle your own hedge fund administration, we suggest you purchase the hedge fund accounting software you are going to use and start recording your fund's trading activity and the acceptance of investors.  Learn More About Hedge Fund Administration

20. Initial and Annual Audits.
If you allow non accredited investors in your hedge fund, you will need as initial "launch" audit.  Your hedge fund will need an annual audit as well.  We will introduce you to auditors that we have worked with in the past.

21. Investor Relations and Communications. 
Prepare the monthly or quarterly statements for your investors and send out with your cover letter.  Continue to attract investors and raise capital.  Learn More About Hedge Fund Marketing

CapitalManagementServicesGroup.com is recognized by discriminating fund managers and businessmen as being the foremost tax and legal authority in the business.  Attorney Hannah Terhune's education and experience are unsurpassed in the area of hedge funds creation and management platforms, and the complex body of related tax laws.  Ms. Terhune's extensive knowledge and experience have made her an indispensable resource for serious hedge fund and business professionals.  Ms. Terhune's articles on the subjects have appeared in over 100 publications worldwide.  Chances are, if you have read about the above matters, Ms. Terhune has written about them.

Give us the opportunity to use that knowledge and experience for you.  We have both regulatory experience and the understanding of the foreign exchange and securities markets.  We know how to navigate the compliance with rules and regulations in the United States as well as in regulated jurisdictions such as United Kingdom, Singapore, Hong Kong, Canada and the British Virgin Islands.  Each client receives personalized attention from our attorneys and staff.   No client is too large or small though because of our boutique size.  We pride ourselves in providing personal attention to each client.
 
CMSG provides the best services and support needed for hedge funds and business projects.  No need to coordinate work between different firms--we handle the entire business process from start to finish.  We offer accounting, tax planning services, tax return preparation, business consulting, and U.S. and international company formation services.  Our professionals provide the highest quality services at  competitive rates.  But don't take our word for it, give us a call and let us prove what we can do for you. Read our Leading Media Articles, Customer Testimonials and learn more About Us.

Personal Consultations  You get answers to your specific questions by speaking directly to Hannah Terhune, an experienced hedge fund and international tax attorney.  Ms. Terhune's hard-earned knowledge and experience can be put to work to save you unnecessary steps and costly wasted effort.  The consult is an invaluable opportunity to speak to Hannah one-on-one, and learn how to achieve more in less time.  As a result, you can anticipate that the return on your investment will far outweigh the costs associated with our unsurpassed services.   Ms. Terhune's credentials reflect an invaluable resource that combines a well-informed professional practitioner with sound ethical judgment that cannot be over-estimated.  The expertise required to recommend best solutions and provide sound advice should never be taken lightly.  We are confident that when you are finished with your consultation, you will be impressed and more informed about your business plans than ever before. Call (307) 213-4732 or Click Here to Request Services.

Our Commitment  Henry David Thoreau wrote:  "Do not hire a man who works for money, but him who does it for love of it."  We are committed to your business plans and bringing you the best possible options.  We are an established and internationally recognized business that serves and educates our clients throughout the industry.  We do this by striving for the best results.  Above all, we are a law firm.  A lawyer is a philosopher and role model.  The ability to improve our clients' lives is a privilege that we do not take lightly.  There is tremendous power in being able to effect a positive change in our clients' lives.  Our aim is to welcome our clients and to provide a comfortable, warm environment for all.  Thanks for visiting our website.  We hope to have the opportunity to serve you.

Why Hire Us?  When you engage us for hedge fund you get a unique combination of securities, tax, and international experience, focused on the trader niche.  We have established a leadership position with traders.   We are one destination for all your very special hedge fund and trader tax needs.  We think we have the best set of offering documents based on the current and ever changing federal, state and offshore securities, commodities, and tax laws.   We aim and deliver quick turnaround times, because we understand that our customers want to begin their money management business as soon as possible.  We conceive, structure, and deploy the best tax saving strategies into your hedge fund vehicle (for the benefit of the manager and their investors) and your management company. Investors value tax-savings strategies and we utilize all our special knowledge and ideas in this area.   Our customers value our one-stop relationship.   We will help you start your business and continue to assist you.  Our tax services division handles accounting, software, and tax compliance, including all tax matters (tax planning and tax returns).  Only one thing counts with us and that's our customer relationships!

Website content and design are copyrighted 2001-2012 © by Hannah M. Terhune and all rights are reserved.  This web site is designed for general information only.  The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney/client relationship.