Legal Blog

More Changes Due to Crowdfunding

The SEC has announced that it plans to make some additional changes to its rules in connection with Crowdfunding. This time they are planning to require that a Form D be filed with the SEC prior to advertising any sale of stock. These rules aren’t finalized, but it is likely that the SEC will implement rules that are very similar to those proposed. Nearly any time you sell securities to anyone other than your close family, you are going to also need to file a Form D with the SEC. Any time you are dealing with the SEC, there are a multitude of rules and regulations that govern how, what and when you need to do things. There are even requirements as to the digital format the Form D must be filed in, and, if you miss a deadline, the SEC generally isn’t forgiving. So, this isn’t quite the same thing as walking into the DMV. Crowdfunding is coming…so we’re told. If you are thinking about raising funds through an offering of securities (either debt or equity), please contact us and we can help you do so in a manner that assures you that neither the SEC nor your investors will greet you with an unwelcome surprise down the road. If you have questions about Crowdfunding or other securities issues, please contact Offit Kurman business law attorney Brent Salmons at (240) 507-1721 or bsalmons@offitkurman.com. Mr. Salmons has significant experience assisting clients in debt and equity fundraising as well as mergers and acquisition matters. His practice focuses on providing comprehensive legal advice to clients in diverse industries, including Telecommunications, Media and Technology, Government Contracting, Energy and Real Estate. To learn more about Offit Kurman – one of the fastest-growing, full-service law firms in the Mid-Atlantic region – please fill out our contact form. With over 100 attorneys in seven offices serving Washington DC, Baltimore, Philadelphia, Wilmington and Northern Virginia, the firm is well positioned to meet the legal needs of dynamic businesses and the people who own and operate them. You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.