How can I use crowdfunding to fund my business?
Up until recently, crowdfunding was limited to fund causes, non-profit initiatives, and other similar concepts. Seeking funding for private businesses was forbidden using crowdfunding was in violation of federal and state law depending on your state. However, effective May 16, 2016, crowdfunding for your business became legal so long as you follow certain compliance requirements and register your business with Securities and Exchange Commission (SEC). Some of the requirements include a business description, financial statements and projections, the management team, and the offering that will be disseminated to the public.
It is important to note, while registering your business with the Securities and Exchange Commission (SEC) may seem easy, both the registration and approval process are relatively new, may be subject to change, and can take longer than expected. Therefore, if funding is essential for launching and/or expansion of your business, you want to avoid any problems with Securities and Exchange Commission (SEC) that may delay approval for your business to be listed on a crowdfunding portal.
Benefits of having an attorney involved when reviewing a Franchise Agreement
- Our Attorneys have reviewed the laws and have become knowledgeable regarding the crowdfunding regulations.
- Can analyze the information to be submitted to the SEC including the offering to alert the client to any issues that may delay or cause the registration to be rejected.
- Can amend and adjust the registration information to reduce the chance of rejection.
How long does it take to review a Franchise Agreement?
Varies depending on the Securities and Exchange Commission (SEC).
Why is important to have crowdfunding registration documents and the offering professionally reviewed?
Every person in the beginning stages of starting a business should consider contacting an attorney, especially when seeking funding for the business. Reason being, attorneys have an intricate knowledge of the law and can spot problematic issues within the crowdfunding registration and offering documents that could lead to a rejection. Therefore, it is recommended you select attorneys with both knowledge of the law and business acumen as they can best analyze the financial position of the crowdfunding registration. Having such attorneys will ensure you are providing an accurate financial need of the business in order to avoid being too short or over funded and, thereby, losing ownership for no reason.
Here at SG Law Group, we have attorneys with knowledge of both the law and business. The attorneys at SG Law Group can make sure that the crowdfunding registration and offering meet the qualifications of the SEC so as to reduce the possibility of rejection.
Hire an affordable, professional Attorney to draft all the franchise documents for your business Today! and Hire an affordable, professional Attorney to review all the franchise documents Before You Sign!