From help on the business plan to dealing with the regulation of the management operation and, of course, finding the most tax-efficient structures for the management operation and the fund, the accountant plays an important role in the fund of hedge funds startup process.
They work closely with the lawyer and any other consultants to ensure that both the management company and the fund itself have been set up in the most tax-efficient manner. And they will work with the administrator to ensure that US tax payers receive the right K-1 documentation.
It is important to bring the accountant into the startup process as soon as possible to help smooth the regulatory process in European countries - though this is less important in the US, where the regulatory regime is 'lighter' - and ensure that the startup doesn't trip up over some tax issue.
There are plenty of pitfalls, such as inadvertently...