What’s Up With Crowdfunding? An Attorney-CPA Weighs In…

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Now that you’re registered with the SEC; your offering finalized

So, now that you’re registered with the SEC; your offering finalized; and your registered crowdfunding website selected, you are that much closer to getting your investors! 

So, as part of your offering, you must state when you will accept offers of investment and when your time frame to collect shall terminate.  The reason you must provide these details is to ensure the investors know the cutoff. 

This gives them the opportunity, any time prior to 48 hours deadline for the offering to collect investment, to cancel their investment if they wish.   This last point is obviously done to protect the investors similar to rules in the stock market protect investors.

So, you’ve registered with the SEC, completed your offering, selected your SEC registered crowdfunding website, listed your offering, and obtained your funding.  All done!… Not quite. 

Now, comes the compliance phase of the process, which entails periodically disclosing information about the company such as annual reports including financial statements; although, they need not be audited if the company does not currently do that depending on the amount of the offering.

I can imagine I have answered a few questions and possibly created additional ones.  Not to worry.  If you have questions, feel free to contact me.  I would be glad to help. 

But don’t wait, the time for your success is now!

[1] See paragraph (a)(2) of Rule 100 of Regulation Crowdfunding

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