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robertj

posts: 1458

Apr 01, 2009 11:01 AM ET    Quote  Report Abuse
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Yes, in order to sell any security (the definition of which is fairly broad) one must register that security with the SEC - unless they qualify for an exemption.
 
Most federal exemptions prohibit "general solicitation" -which your Internet approach would likely be.
 
The registration process is lengthy and fairly expensive and is usually not appropriate for a startup company - which I perceive yours is.
 
That said, there is probably a process that is appropriate for your situation. Selecting the optimum one will depend upon your capital strategy - which starts with how much capital one is seeking (now and in the future). After determining the optimum strategy, we find that our clients have much greater success when they are fully Capital Ready before they begin the process of finding their capital source(s).
 
Since every situation is different, if you`d like to discuss yours- contact me directly or send me a PM.


-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com


HDFilmMaker2112

posts: 29

Apr 01, 2009 11:33 AM ET    Quote  Report Abuse
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Would I have to register with the SEC in order to publicly offer an investment opporunity on the internet? I can`t afford to register with the SEC, so how else could I get my investment opportunity out to other individuals?
HDFilmMaker2112

posts: 29

Apr 01, 2009 1:57 PM ET    Quote  Report Abuse
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This is concerning a feature film production, in which I would offer up to 49.9% of the company for investors. I am considering an LLP or a LLC. The LLP would have the 49.9% as limited partners which would be the investors and the remaining would be the general partner; which would be the production company LLC. So I`m leaning towards just doing the production company LLC and offering the 49.9% of that, since I would intend to purcahse back the 49.9% eventually. If I did that with the LLP, I`d have to have my LLC buyout the Limited Partners and then take over the LLP.

So in this case which would be the better company structure LLP or LLC?

Total capital costs would be 1.5 - 2 million.

robertj

posts: 1458

Apr 01, 2009 2:15 PM ET    Quote  Report Abuse
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Most States restrict who can form and participate in an Limited Liability Partnership. For example in California, Limited Liability Partnerships may only be formed by licensed persons for the practices of public accountancy, law or architecture.
So you would use the LLC version rather than an LLP
 
Again, every situation is unique, so if you want to discuss the specific of yours - you can send me a PM or email me directly using Robert@bizgrowthmasters.com


-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com


HDFilmMaker2112

posts: 29

Apr 02, 2009 2:40 PM ET    Quote  Report Abuse
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What are some alternative funding sources other then selling a stake in the company?
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