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Meet Hannah Tribune
Offering Legal, Tax, Business & Banking Services to
Hedge Funds & Fund Managers
 Worldwide
Hedge Fund Checklist

Step 1 Getting Started Experienced service providers play a vital role in guiding hedge fund managers.  Hire a lawyer with knowledge of the hedge fund industry from a regulatory, legal, tax and business perspective. Your lawyer should be committed to working directly with you through all aspects of the fund development and launch process.  You can reach us easily by telephone, email, and Skype. We have good references and a good reputation for client service.  Click Here to Learn More About Us  A good hedge fund lawyer such as Hannah Terhune can help you start your hedge fund. Contact Us First

Step 2 Determine Your Hedge Fund Launch Date Assuming registration as an investment adviser and/or as a commodity pool operator is not required, you should be able to launch a U.S. hedge fund in 4 weeks. It takes a little longer to launch an offshore hedge fund.  If registration with the regulators is required for the fund manager (i.e., as an investment adviser or as a commodity or forex pool operator) give yourself a few months to launch the hedge fund.

Step 6 Define the Terms of the Hedge Fund  You are creating a unique financial product. Complete the Hedge Fund Terms Sheet Questionnaire that we provide to you when you become our client.  We will work with you to identify, define, and provide examples of the core elements of hedge fund offering documents based on our substantial experience and extensive collection of hedge fund offering documents.  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.  Learn More About Hedge Fund Offering Documents

Step 7 SEC Form D and other Blue Sky Filings If your hedge fund accepts a U.S. investor, SEC Form D must be filed.  We prepare and file SEC Form D for your hedge fund and the blue sky filings for any state where you find an investor.  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.  Learn More About Blue Sky Filings and SEC Form D

Step 3 Evaluate (RIA) Investment Adviser Licensing Requirements Determine whether you must register as investment adviser (RIA) with the SEC or your home state.  If you trade forex, futures or commodities, you must register with the U.S. National Futures Administration (NFA) unless an exemption applies to you.  Learn More About Commodity Pools and Forex Trading  Only if you are licensed, you can advertise your advisory services. Learn More About Our RIA Formation Services

Step 4 Form the Hedge Fund & Investment Manager To start a hedge fund you need to create the fund and investment management company.  In the United States, the hedge fund is established as a limited partnership  (LP).  Learn More About Incubator Hedge Funds and Learn More About Starting a Hedge Fund  Your hedge fund management company can be set up as a limited liability company (LLC) in your home state. Each state requires that companies incorporated there appoint a local party to represent the entity and be accountable (i.e., the resident agent). Our sister company, Capital Management Administrative Services, LLC provides Registered Office Services in Delaware. In your home state, you can be the resident agent for the LLC.  See U.S. Company Formations

Step 5 (RIA) Investment Adviser Registration.  If you need to register as an investment adviser, start the registration process early.  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.  Learn About Investment Adviser Registration If you intend to invest the fund’s assets in any futures, options on futures, forex (foreign currency), swaps or other related derivatives products, you need register as a commodity pool operator (CPO) or a commodity trading advisor (CTA) with the U.S. Commodity Futures Trading Commission (CFTC) and become a member of the National Futures Association (NFA).  Learn About NFA Registration

Step 8 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 in the United States unless you operate under Rule 506(c). You cannot advertise to the public in the United States unless you register your hedge fund with the SEC under rules governing hedge fund advertising.  In that case, the SEC has to review and approve your ads for the hedge fund.  Work only with licensed brokers.  The SEC is cracking down on unlicensed broker activity.  For example, read "SEC Continue Crackdown on Unregistered Broker-Dealers"

Step 9 Hedge Fund Administration There is no legal requirement in the United States to have an administrator.  It is a good idea to have one if you do not have time to manage the books of the fund. Offshore, local country law may require an administrator for a recognized or regulated hedge fund.  The administrator calculates the net asset value (NAV) of the fund portfolio, calculates performance and management fees, and creates account statements for investors.  In some situations, the administrator will control the movement of cash through a “second signer” service, designed to provide investors against hedge fund fraud. A “second signer” or "cash movement" agreement requires the fund’s management to obtain a signature from the administrator prior to making a transfer to or withdrawal from the fund’s bank and/or brokerage account. Good fund administration lowers the cost of year end tax return preparation and the cost of an annual audit.  We offer hedge fund administration services through Capital Management Administrative Services, LLC.  Contact Us and Learn More About Hedge Fund Administration

Step 10 Initial & Annual Audits If you allow non accredited investors in your U.S. hedge fund, you will need an initial "launch" audit. The auditor works with the hedge fund manager and administrator to prepare the fund's financial statements.  Audited financial statements contain a wealth of information not only about the financial position of the fund, but also regarding key decisions the fund has made and expenses.  We maintain a list of low cost PCAOB (required by the Securities and Exchange Commission and some state security boards for RIA licensees) and non PCAOB auditors.  The PCAOB is directed by the Sarbanes-Oxley Act of 2002 to establish auditing and related professional practice standards for registered public accounting firms to follow in the preparation and issuance of audit reports.  Contact Us For Assistance

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).

Hedge Funds - Limited Partners' Right of Access After Parkcentral Global, L.P., v. Brown Investment Management, L.P. by Jim Brennan.   Cititrust Edge Magazine (4th Quarter 2012).

Strategic Hedge Fund Planningby Hannah Terhune.  Canadian Hedgewatch (March 2012).

Strategic Hedge Fund Planning by Hannah Terhune.  MoneyScience (March 2012)

Hedge Funds - Limited Partners' Right of Access After Parkcentral Global, L.P., v. Brown Investment Management, L.P. by Jim Brennan.  Canadian Hedgewatch (July 2011).

Planning for Cross-Border Financing Arrangements.  Practical International Tax Strategies (May 31, 2011).

U.S.--Tax Traps of Non-U.S. Issuer Debt Offerings.  Practical International Tax Strategies (April 15, 2011).

America the Beautiful Tax Haven.  Cititrust Edge Magazine (1st Quarter 2011).

Offshore Hedge Fund Focus:  Master & Feeder.  Cititrust Edge Magazine (4th Quarter 2010).

U.S.--Cross Border Credit Agreements:  Planning for U.S. Withholding Taxes.  Practical International Tax Strategies (November 15, 2010).

Starting an Offshore Fund.  themanager.org (June 2008).

Mixing Investment Adviser and Brokerage Services.  Hedge Fund Monthly by EurekaHedge.com (October 2007).

Offshore Fund Taxation.  Hedge Fund Monthly by EurekaHedge.com (May 2007).

Forex Trader to Forex Manager.  Offshore Business Magazine (November 2006).

Forex Trader to Forex Fund Manager:  The Path to Success.  Hedge Fund Monthly by EurekaHedge.com (October 2006).

Drafting Hedge Fund Performance Allocations.  Hedge Fund Monthly by EurekaHedge.com (August 2006).

Como Crear su Propio Hedge Fund by Hannah M. Terhune, Eva Porras, Argilio Rodriguez and Garrett Fisher (2006).

Offshore Hedge Funds: Focus on Master/Feeders by Hannah M. Terhune (2006).

Temas Sobre Impuestos de Sociedades Colectivas para Hedge Funds en Paraiso Fiscal by Hannah M. Terhune (2006).

Establish a Marketable Track Record with an Incubator Fund by Hannah M. Terhune (2006).

Must I Register as a Commodity Pool Operator? by Hannah M. Terhune (2006).

Do’s and Don’ts for Crafting Hedge Fund Peformance Allocations by Roger D. Lorence and Hannah M. Terhune. Derivatives:
Financial Products Report (an RIA publication) (September 2005).

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).

Practical Strategies For Section 475(f) Elections by Roger D. Lorence and Hannah M. Terhune. Derivatives Financial Products Report (WG&L/RIA,a Thompson Company) (March 2005).

Forex Hedge Fund Management by Hannah Terhune and Roger D. Lorence.  Currency Trader (March 2005).

Advising Clients on Internet Server Co-Location Agreements, Practical International Tax Strategies (March 15, 2004).

Structuring and Financing International Operations Using Hybrid Entities and Tax-Efficient Financing Practical U.S./International Tax Strategies (Jan. 15, 2004).

Hedge Fund Compensation Arrangements. Practical U.S./Domestic Tax Strategies at Page 18 (Dec. 2003).

U.S. Inbound Investment – The Portfolio Interest Exemption. Practical U.S./International Tax Strategies (Dec. 15, 2003).

Foreign Futures Planning: The 60/40 Question. Practical U.S./International Tax Strategies at Page 12 (Sept. 30, 2003).

Managing Offshore Hedge Funds - A View from the Beach: Practical U.S./International Tax Strategies at Page 9 (June 15, 2003).

Offshore Hedge Funds - Master/Feeder Compliance Issues: Practical U.S./International Tax Strategies at Page 9 (May 15, 2003).

Ready for Help? Please call us (307) 213-4732 or e-mail Hannah Terhune, international hedge fund and tax attorney.

Leading Media Content & Articles on Hedge Funds & International Tax Planning

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.  Our best ideas are not on this website. When you consult with us, you have access to a unique and desirable blend of 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 service to select clients.  Need to develop a tax and regulatory footprint outside of your home country? Give us a call and let us prove what we can do for you.  We offer virtual residence and virtual office services in Delaware, Florida and in other locations. We can assist with opening U.S. bank and brokerage accounts. 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. The views expressed on this website are subject to change based upon new information, new technology, consideration of new perspectives and/or for no reason at all. This website exists for educational purposes and nothing on this website should be considered as legal advice.  Website content and design are copyrighted 2023© by Hannah M. Terhune and all rights are reserved.

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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.

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. The views expressed on this website are subject to change based upon new information, new technology, consideration of new perspectives and/or for no reason at all. This website exists for educational purposes and nothing on this website should be considered as legal advice. Website content and design are copyrighted 2024© by Hannah M. Terhune and all rights are reserved.