Offering Legal, Tax, Business & Banking Services to Hedge Funds & Fund Managers Worldwide
Offshore USA Hedge Funds
Offshore Hedge Funds & Offshore Incubator Hedge Funds Starting an offshore hedge fund? The best hedge fund countries (besides the United States) are the British Virgin Islands, the Bahamas, and the Cayman Islands. The United States, British Virgin Islands, the Bahamas and the Cayman Islands are inexpensive and offer the quickest path to licensing in the world. Learn More About Offshore Incubator Funds and Learn More About Offshore Funds We offer flat rate fees and start-to-finish services. Need help? Contact U.S. Attorney Hannah Terhune for a Free ConsultationHedge funds are set up as offshore and/or onshore funds to allow for different groups of investors. Hedge fund managers who have significant potential investors from different countries create offshore funds to make it easier to blend their customer base. Many hedge fund managers use offshore hedge funds to provide financial privacy to investors.
Why the United States? Even if you are based in another country, consider forming a U.S. hedge fund. The United States offers easy, low-cost access to the legal, tax, accounting, retail and institutional brokerage services, and regulatory services needed by a hedge fund sponsor to organize a hedge fund. Despite what some investors think about the purported negativity surrounding the United States, many more investors continue to establish U.S. based hedge funds because of the minimal expenses associated with starting a U.S. hedge fund. Hedge fund sponsors (i.e., the organizer(s) of the hedge fund) based outside the United States are usually surprised and delighted to learn about the “light touch” of U.S. regulation and low costs associated with forming a U.S. hedge fund. The United States is a tax haven for foreigners. Learn More About U.S. Incubator Hedge Funds and Starting a U.S. Hedge Fund The best news of all is that U.S. hedge funds can be marketed just like retail funds as a result of a recent law change. There is no longer a ban on advertising. Learn More About Raising Capital for a Hedge Fund This puts the United States at the top of the list as one of the best countries for hedge funds. Contact Hedge Fund & International Tax Attorney Hannah Terhune
"Offshore" USA Investment Adviser Registration Does your home country not offer licensed investment adviser status to anyone outside the establishment? Don't be discouraged! Click Here to read our landmark article about the advantages of registering as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or with one of the fifty (50) states. U.S. law is clear, fair and easy to comply with. Learn More About Investment Advisers and Contact Hedge Fund Attorney Hannah Terhune for a Free Consultation
Foreign Owned U.S. Disregarded Entities Recently the U.S. Treasury issued regulations to require foreign-owned, single member U.S. limited liability companies (SMLLC) to disclose ownership to the U.S. Internal Revenue Service (IRS). The new regulations require the collection and data and do not impose a tax. The rules issued under Internal Revenue Code Section 6038A require foreign-owned SMLLCs to file Form 5472. Form 5472 is required when a single non-US entity or individual owns 25% or more of a U.S. corporation. The regulations are effective as of December 13, 2016. However, the Form 5472 portion of the regulations applies to taxable years of foreign-owned disregarded U.S. entities beginning after December 31, 2016 and ending on or after December 13, 2017. If a foreign-owned disregarded U.S. entity terminates before December 13, 2017, the U.S. entity would not need to file a 2017 Form 5472. Under the rules, these SMLLCs are treated as "corporations" for purposes of Internal Revenue Code Section 6038A. The penalty for failure to file Form 5472 is $10,000 per year and filing a substantially incomplete Form 5472 constitutes a failure to file with the result that the penalty can be imposed. Therefore filing the form but omitting information is viewed as a failure to file. Incremental penalties of $10,000 are imposed if the failure to file continues past 90 days after notification is sent by the IRS--there is no ceiling on the total penalty amount.
This notwithstanding, the U.S. remains a tax haven - see See World's Favorite New Tax Haven Is the United States. The United States has long been viewed as a tax haven for foreigners. While the United States requires foreign countries to report financial account information (i.e., under FACTA) about U.S. persons to the IRS, it provides nothing in return. The United States also refuses to sign on to the Common Standard on Reporting. U.S. financial institutions report to the IRS bank deposit interest payments paid to nonresident individuals.
U.S. SEC Offshore AlertThe U.S. SEC's 134-page report published in 2003--The Implications of the Growth of Hedge Funds--presents the status of the hedge fund industry as viewed in the United States. What is interesting about this SEC Report is that articles and web content authored by our very own hedge fund attorney Hannah Terhune, JD, LLM (Taxation) (when she was the Chief and only Attorney at GreenCompany.com) on offshore hedge funds was cited on page 10 of the U.S. SEC Report as providing information the SEC Staff found to be valuable in its understanding of the hedge fund industry. For a decade, hedge fund attorney Hannah Terhune has been counted on by the U.S. government and hedge fund organizers worldwide as a source of cutting edge and practical information on hedge fund formations.
You will see from this web site that we supply more information about hedge funds than most books do on the subject. It's great to see that Hannah Terhune's expertise is appreciated by the SEC! This is quite a coup for Hannah, and provides one more piece of evidence as to how she can help you. You can reach her today at hterhune@capitalmanagementservicesgroup.com or at +1 (307) 413-2212 or on Skype at: CapitalManagementServicesGroup.
Call Us First We are experts in international hedge funds and tax. Click on any reference below to our leading articles:
Strategic Hedge Fund Planning by Hannah Terhune. Wilmott Magazine Ltd. (Volume 2013, Issue 63, pages 8-11 January 2013).
Trading Foreign Index Contracts? Know the Tax Rules Before You Trade by Hannah M. Terhune and Roger D. Lorence. Stocks, Futures and Options (June 2005).
Follow @HannahTerhune
Read leading, cutting-edge articles on hedge funds and taxes by Hannah Terhune, hedge fund and international tax attorney. Her articles are widely published on the Internet and recommended by TheStreet.com and other respected media.
Capital Management Services Group, Inc. is an authority in the hedge fund industry. It is a forward-thinking law firm focused on creating long-term collaborative relationships with a select group of clients interested in the same. It strives to provide “high touch” service and perform a defined set of legal and other services with impeccable efficiency. We offer professional tax advice, state and federal SEC advice, business planning services, international tax, and tax return preparation.
We cater to high-net worth individuals and businesses in the alternative investment community. We are experienced in wealth management, U.S. and offshore hedge fund formations, incubator hedge funds, spot forex funds, master/feeder funds, commodity pools, commodity trading advisory businesses, investment advisory companies, fund administration, SEC and state investment adviser registrations, compliance with Blue Sky laws, and hedge fund taxation. We offer professional tax advice, state and federal SEC advice, business planning services, international tax, and tax return preparation. You may have an unusual situation that needs special attention. We are ready to help. Perhaps you need extra support in an area, such as year-end accounting or performance audits. Blue-sky filings or Investment Advisor Registration We can help. We offer complete 24/7 access and great working relationships. We are simply second to none. Think outside the ordinary.
Our best ideas are not on this website. When you consult with us, you have access to a unique and desirable blend of personalized,yet, professional experience. Give us the opportunity to put our knowledge and expertise to work for you. We provide high quality services at competitive rates. We offer “white glove” corporate concierge services. We have many ideas and the resources to implement them. Get answers to your specific questions and purchase a consultation with a lawyer. We look forward to connecting with you personally and are confident that you will be impressed. We set up a variety of investment funds, provide business and global tax advice, while offering continuous support services to our clients. We help our clients as their needs evolve and take pride in maintaining relationships with our clients.
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.
