ah.. that sounds like tripple-taxing then. 1) Federal Corporate Income Tax, 2) Incorporation state income tax, 3) State of shareholder residency taxing income (and then shareholder spending money to buy things and pay sales tax.. - 4?)
Funds with international investors often incorporate in a place like the Caymans. If the fund was incorporated in the US, a UK investor "deal with" US+UK tax, even if they don't visit or do business in the US.
