INVESTMENT MANAGEMENT
INCUBATOR FUNDS

An incubator fund is the least expensive and most flexible hedge-fund business plan around! See our articles below to learn about incubator funds.

The incubator fund is designed for your own money only, and the documents are simplified accordingly. The friends-and-family incubator fund has similar documents to a for-profit hedge fund, minus the compensation clauses. Consult with an outside attorney about starting an incubator fund.

Green NFH, LLC offers tax compliance (annual tax preparation and planning) and assurance (audit and attest services). Other accounting firms offer monthly or quarterly accounting.

The incubator fund is generally structured as an investment fund vehicle like a Delaware Limited Partnership (LP) or Limited Liability Company (LLC). Your management company is generally formed in your home state, if needed to start. Plus, your attorney should consult with you on various restrictions and a road map on how to proceed, so as not to go beyond the bounds of trading your own money, or friends and family money in the incubator fund. The attorney's heavy lifting on the fund paper work including private placement memorandum, LLC operating agreement, and subscription materials can wait until friends and family join. Compensation clauses are added when you go to the final phase. Your attorney should consider important licensing, registrations, and other plans in phase I too. Read about Phase I and II in the articles below.

The benefit of starting an incubator fund is that you can begin generating a historical performance record now and wait on completing the setup of a hedge fund (Phase II) that can be offered to others when the fund has a performance record. This takes considerable start-up risk capital off the table. Green NFH, LLC can perform your assurance services. Learn more how we can help you in our Dec. 5, 2012 blog.

Green NFH, LLC can handle the tax compliance (preparation of your annual income tax return filings) for a reasonable cost, less than what full-fledged hedge funds pay.

Incubator funds can be scaled up to hedge funds or scaled down to a good solution for trading your own funds too. Many of our incubator fund clients engage Green NFH, LLC for tax compliance services years before they decide to have audited financial statements.

Learn more about incubator funds in our Webinar recordings and read our blog dated Feb. 10, 2011: "Incubator Funds." (Note, we invented this concept in early 2000s and have set up hundreds of incubator funds since. When we published this blog, we were not offering assurance (audit/attest) services, so we could be involved with assisting on development.)

To learn more about our assurance and tax services for incubator funds and hedge funds, read our latest blog dated Dec. 5, 2012: "Investors in hedge funds depend on “assurance” from quality independent CPA firms."

If you have any questions about incubator funds, or would like to get started, please email hedgefunds@greencompany.com and/or call us.


Highlighted Recent Recordings:

*Entities & Employee-Benefit Plans
*Current Developments in Tax Law that Affect Traders
*Accounting for Traders
*The Section 1256 club is hard to get into: Futures on foreign exchanges often don’t qualify
*Puerto Rico’s tax haven status
*Entities: A key update on trading entities and management companies
* 2013 Tax Filings For Traders & 2014 Tax Planning
*Forex Tax Treatment & Planning
*Trader Tax Law Update: Current Developments
*2014 Tax Planning & Will an Entity Help Lower Your Tax Bill?
*Audits of Performance Records

New Website

Trader Tax Center


Tax Newsletter & Calculators

Highlights (see the full archive):

Aug 19: Foreign partners in a U.S. trading partnership can be tax free Read More

Aug 13: IRS warns Section 475 traders Read More

June 20: Tax treatment for Nadex binary options Read More

June 19: IRS softens its stance for some taxpayers with undeclared offshore accounts Read More

June 12: IRA rollover rule changes Read More

June 6: Bitcoin is not reported on 2013 FBARs Read More

June 5: Tax deadlines in June: U.S. residents abroad and FBAR Read More

June 2: Tax treatment for foreign futures Read More

May 21: Bitcoin tax update: Can business traders apply Section 475 elections to bitcoin trades? Read More

May 13: Puerto Rico’s tax haven status is tailor made for investors, traders and investment managers Read More

May 6: Entities: A key update on trading entities and management companies Read More

Mar 25: IRS guidance on bitcoin transactions will chill its use Read More

Feb 27: Another trader tax court loss (Assaderaghi) Read More

Feb 1: Net investment tax details Read More

Dec 4: IRS final regulations for Net Investment Tax help traders. Read More

Dec 3: Bitcoin is a hot commodity, but is it taxed like commodities, assets, or currencies? Read More

Nov 15: Another non-business trader gets busted in tax court trying to cheat the IRS. Read More

Nov 6: Hedge fund investors depend on “assurance” from quality independent CPA firms. Read More

Oct 29: ObamaCare taxes are starting to affect traders. Read More

Aug 30: The Tax Court Was Right To Deny Endicott Trader Tax Status Read More

Aug 18: Common trader tax mistakes Read More

July 24: Learn the DOs and DON’Ts of using IRAs and other retirement plans in trading activities and alternative investments Read More


GreenTrader blog archive, Forbes blog, Benzinga blog.

 




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