Because of the burden of compliance with US regulations regarding foreign investment, MC Companies has decided that it will accept new investments only from persons and entities that are not subject to withholding or other requirements applicable to foreign investors under US tax law. This was a difficult decision, as we have developed wonderful relationships with numerous foreign investors. However, the cost of compliance is significant enough to affect the returns that are available to our investors.
A foreign investor may be able to satisfy our requirements by forming a multi-member limited liability company (LLC) in the US with other investors. However, before MC Companies accepts any investment from any such LLC, MC Companies will require an opinion from a Certified Professional Accountant or attorney licensed in the US, stating that the multi-member LLC satisfies our requirements.
Please be aware that a single member LLC is a “disregarded entity” under relevant tax law and will not satisfy our requirements. Similarly, any LLC where all ownership interests can be traced back to a single foreign person will not satisfy the requirements.
There may be other approaches that would allow a foreign investor to invest with us. It is also possible that any given approach would be unsuccessful or expensive – any investor will have to discuss possible strategies with its accountants and attorneys.
MC Companies and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and it is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.