Forums: Discussions for entrepreneurs and small business.

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Our Goal Is Your Success!
Founder Girls with Goals

Regulation D is part of the Federal securities law. It defines 3 exemptions from the requirement for all securities to be registered with the SEC before sale.

Here is a link to to some FAQ`s about Reg D = http://www.sec.gov/answers/regd.htm

Do you have a specific question?

 

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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

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Our Goal Is Your Success!
Founder Girls with Goals

Erin,

1. Re: membership units. Membership units in an LLC are a security, so the offer and sale is subject to the SEC regulations - just like for a corporation. There is some difference in the preparation of documents but basically it works the same.

2. Percentage. Here again the basics are the same for an LLC as a Corporation. Ultimately the price per unit is tied to a "valuation" of the company.

3. How long is the process:  Depending upon the stage of the company and assuming there is a reasonably complete business plan in existence - the documents can be completed in a couple of weeks.

4 Is there an easier agreement? I`m not sure exactly what you mean by easier. As a general answer - it depends, on several factors.

There are disclosure documents and transaction documents.  Disclosure requirements are defined according to the specific exemption used. For example:  Reg D-506 requires "full" disclosure - which is accomplished via a Private Placement Memorandum (PPM).

The transaction document (often a subscription agreement) should be designed to properly protect all parties by clearly conveying the terms of the transaction.

If you`d like to discuss your specific situation - 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

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Our Goal Is Your Success!
Founder Girls with Goals

RobertJ,

I`ve seen you name many times in this forum.  I`ve also noticed that your posting are quited informative and educational.

I have grown quite curious about you.

Are you in the business of making businesses better, or are just speaking from years of varied experience?

Mattsind,

Thanks for the complement.

I guess the answer to your question is -both.  I have "been around" and gathered a lot of experience in different situations. For these past few years, my business has been geared toward and focused on  helping early stage businesses by enabling/facilitating their access to capital.

All the best

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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

I will enjoy being enlightened further as I continue through the different threads in this forum. 

If you have specific questions, you can send me aw PM

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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

Actually, just reading your posts in various threads, like this one, has taught me a great deal.

You are certainly an asset to this forum.

I glad I joined.