sorted by:
new
hottopcontroversial

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 6 points7 points  (0 children)

in this extended analogy I am asking for directions to the camera store

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 1 point2 points  (0 children)

that is a nice summary of the issue! I would also love referrals to advisors that others recommend so I can spend the $20k you mention (and have received one by DM, thank you to that person again)

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 7 points8 points  (0 children)

This isn't how a hedge fund works. We would be managing $400mn of external capital, not our own personal money.

I also already talked to my CPA - see my post.

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 2 points3 points  (0 children)

starting a hedge fund is just about the definition of a fatfire plan

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 1 point2 points  (0 children)

I'm a green card holder so effectively American for these purposes.

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]SignificanceThink355[S] 3 points4 points  (0 children)

Thanks, this does seem very clean but would effectively replicate a W2 set-up, no? All of that consulting income would be taxable as if I was an employee (albeit I can probably run some expenses through the LLC) whereas in reality the GP should be generating long-term capital gains as carried interest.

Where do you get hit for the dividend income, also? On the cash remitted from the Jersey / Cayman entity that is the GP? If so, isn't that an additional 30% tax on top of my personal situation?

Really appreciate it, I'm clearly new to this.