I would like to know more about Regulation D. Anyone have any information that they can share?
Thank you,
Erin
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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?
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
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
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
If you have specific questions, you can send me aw PM
If you have specific questions, you can send me aw PM
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