Registered: Dec 2008
10-23-12 10:32 PM
Quote from zdreg:
normal procedure is to set up 2 parallel LLP. one is for US investors and the 2nd is for non US investors.
For a couple of reasons, which may not apply for all cases:
1) is the taxation issue. Many foreign investors don't want to deal with filing taxes in the US, for ANY reason.
2) regulatory issues with foreign ownership of some securities.
But in my case, since I'm a futures only fund, it's not really an issue. Futures aren't securities. Foreign investors don't have to file taxes (although they do have to submit the 1040-type form, the name of which escapes me right now)... and there aren't any regulatory issues.
But a futures-only fund isn't all that common, and some foreign investors don't want to educate themselves with the difference (and/or face the possibility of the IRS coming after them for any reason). So, having an off-shore structure might be a good idea.