Raising Capital For Your Business & The SEC

If you have a corporation or LLC, you’re going to be dealing with securities. Do you know what you need to know when it comes to fundraising and securities compliance? In this episode, Toby Mathis of Anderson Advisors talks to Chris Myers of Holland & Hart about the basics of raising capital for investment and real estate projects. Chris assists public companies with corporate transactions and investment advisers with the formation and operation of private investment funds.

Highlights/Topics: 

• Securities Transaction and Compliance: If someone gives you money, and you take that money to build your business, you are expected to give it back
• Fundraising Pitfalls: Securities regulators are out to get all those that intentionally or unknowingly commit fraud via securities transactions
• Debt or Equity: Securities transactions may allow regulated exemptions or exclusions 
• Examples of Exclusions: Something isn’t considered a security and doesn’t need to be regulated, such as bank stocks
• Examples of Exemptions: Security involving pre-existing accredited investor and doesn’t need review; refer to Section 482 and Jumpstart Our Business Startups (JOBS)
• General vs. Non-General Solicitation: Unlimited or limited number of investors known or not, such as friends and family, buying security and owning equity in your business
• Loans and Less Risk: Corporate diligence picks up non-compliance securities offering 
• Non-Compliance Penalties: Depends on broken rules and involves decision by securities regulators, investors, and commissions
• Road Trip: When raising money, move in the right direction by following the rules and  regulations, such as Rule 506(c) and Regulation D
• Offering Memorandum: Describe, document, and disclose key risk factors to investors; avoid misunderstandings and missing funds    

Resources

Chris Myers

Chris Myers’s Phone: 702-669-4621

U.S. Securities and Exchange Commission (SEC)

Financial Industry Regulatory Authority (FINRA)

Bernie Madoff

IRC Section 482

Tax Cuts and Jobs Act (TCJA) 

Jumpstart Our Business Startups (JOBS) Act

MapQuest

Form D

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube