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Are You Raising Funds For Your Business Legally?

Guest post by: Ken Hollowell

Article Overview: Any individuals that has a corporation or LLC must comply with SEC Regulations when raising capital using equity.

Are You Raising Funds For Your Business Legally?

Every day I am speaking with individuals who intend to raise money with their existing corporation or Limited Liability Company (LLC) who are completely convinced they can raise any amount of money they want using a business plan through private sources.

If you are one of these people, I strongly recommend that you research and read this information immediately.

There are many web sites and self proclaimed "GURUS" that are leading people to believe that YOU can LEGALLY raise money from private individuals (or "angle") investors without having to comply with or "worry about" SEC (Security and Exchange Commission) regulations.

Those web sites and gurus are wrong. And following their advice puts you in jeopardy of losing your business, house and bank account as well as possible fines and sanctions from the SEC and other serious legal consequences. There are specific rules that must be followed.

For nearly 30 years I've been helping business owners fund their companies and projects legally and within the regulations of the SEC.

I use a method that I consider one of the BEST KEPT SECRET IN BUSINESS FUNDING. If a company is either a corporation or LLC and intend to use their STOCK or UNITS to fund their company, I prepare the necessary documentation that exempts the company from violating the Security & Exchange Commissions laws and regulations. The Reg D Series is how it's done. I specifically recommend the Regulation D 504 due to the fact that no filings or reviews are required. It is a cost effective method to raise up to $1 million. If your requirements exceeds $1 million, then most likely a Reg D 506 will be required that has more restrictions and requirements associated with it but again, is very effective. My role is to prepare all the necessary documents and tools used in the offering. I am YOUR coach through the entire process. Most of my clients raise their funding within 90 days.

This is nontraditional funding and does not require financials, credit reports or other burdensome disclosure. The private investor is simple purchasing your privately held stock or a unit position in exchange for his/her money. Each investor takes a minority position in the company. You never lose control of management or majority position in your company.

Each investor will want to know how they benefit from their investment whether through declared dividends or an established percentage of the profits from the company.

Once the Private Placement Memorandum is prepared, one of my associates who is a host for a radio investment talk show will send out a newsletter explaining your offering to 12,000 private investors.

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Article Tags: capital, funding, memorandum, ppm, private placement offering



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