In this edition of the McBride Attorneys Law Show we discuss what do you do when you get threatened to be sued?
You can see the whole episode here. Make sure you subscribe – and ring the notification bell – on our YouTube Channel so you can get updates as we add new episodes.
Crowdfunding – What Is It?
What are the basic rules?
How does it work?
Join The Our Shawn for the McBride Attorney Legal Show(TM) as we explore what we are seeing today in the legal landscape what we need for the future.
**NOTE: Any discussion of legal ideas in any of my public facing materials is not legal advice. You must consult counsel to get legal advice based on your facts and circumstances. Do not rely on the content of this message without consulting a lawyer. No attorney-client relationship is formed by this content (video, blog, etc.) Unless you have retained my firm and I have specifically acknowledged I am your lawyer you should not rely on any of my statements as legal advice.**
If you want to know more about the future of business make sure you join our email list here.
Here is a machine transcript of the show. We note this has not been checked for accuracy and is based on what a computer has generated based on the conversation. But we hope it is helpful to you.
Hey everyone The Our Shawn. Welcome to the McBride Attorneys Law Show want to discuss today crowdfunding. What is it, what are the basics. How does it work.Normal disclaimer applies here.
I’m an attorney, I’m licensed in 12 states in DC. However, I’m not your attorney, by virtue of doing this business.Unless you call my office. We work together. I’m not representing you just getting general ideas on the law, what’s going on there. And what’s happening.Want to dump jump into crowdfunding which has been a popular topic lot of media attention here over the years. A lot of your top of that.Unfortunately we’re seeing a decrease in the number of funding portals out there. And the question is why.I think when the SEC who’s really in charge of crowd funding at the federal level here in the United States set up the rules, the rules became so cumbersome that most peopleDon’t want to comply with them, the cost benefit equation just didn’t work out.
So the four rules for crowdfunding are available at the SEC website and I’m actually going to be looking at the SEC compliance guide.While I’m speaking with you. So if you want to. If you want to check that out. Go to regulation crowdfunding. I’m looking at the Small Entity Compliance Guide for issues.Which is available sec.gov and it will really lay this out in detail, but let’s summarize it.Basically you have a maximum offering at the current time of $1,070,000 this is being recorded in 2019 that number is sometimes index to inflation. So it mayAdjust then you have investor limits, depending on the income or net worth of your investor, you can calculateWhat the maximum now per investor is so you can raise up to that million $70,000 but then the amount that you can get from each investor.Changes, you have to conduct your transactions through an intermediary.
That’s the portal or other crowdfunding platform that you go throughYou have eligibility requirements usually has to be a US company. You can’t be set up in certain ways to prohibit it, and all that’s laid out again at the SEC website.Then you have to do certain disclosures and this is where a lot of work comes in, they’re really explaining your business, you end up doing a lot of work that people really didn’t envisionWhen we came out with the crowdfunding rules and then you also may have a requirement to do annual records afterwards. Once you’ve sold it, and you have to provide annual reports.If you make until certain requirements are met, so you’re going to have some work. And then also, you’re going to get limitations on how you can talk about your investment giant have toLink people back to that portal, the stock is restricted from sales and then of course you have certain requirements on who can be involved.
So a lot of regulation around this andThat’s why a lot of people get frustrated a lot of paperwork to fill out and you generally have to get an attorney involved.There are a lot of people jump them. They want to build portals. They want to go consulting companies, they want to help people do crowdfunding.And the truth is, it hasn’t really taken off, why hasn’t taken off because there’s other exemptions.The basics of securities all is either you can register something or you can be exempt.And a lot of people have looked at other exemptions. Very few people want to go through the registration process, the exemption processes is where mostSmaller and private companies want to be as you don’t want you to the full fledge registration do all the requirements required be a full SEC reporting happen.
So, you, you, you look for an exemption and other exemptions, which has competed very well.With crowdfunding and we’ll do a separate video for that. So make sure you check out the McBride attorneys law showOn YouTube or WWW dot McBride attorneys calm and look at our show on exemptions and I talk about what exemptions are in that showI’m also going to walk you through some popular exemptions, as of the time of recording so you can understand what’s going on.So the reality of crowdfunding is it’s difficult, you typically need to get a lawyer involved.
Explain to you all the nuances and most people have been disappointed.With the outcome. So, folks, it’s out there. It is definitely a tool I talked about in terms of having a toolbox.Of options for you if you want to raise money crowdfunding is one of the options regulation cf. But there are many other options here toolbox and we’re going to jump into thoseOne layer of McBride attorneys last WWW dot McBride attorneys comm check out our blog and find a video you find more information about the other options there. So this is just one tool in the toolkit.Figure out whether it’s right for you and then build your strategy accordingly. All right.
Looking forward to see you in a video, make sure you subscribe.To the McBride Attorneys Law Show on YouTube and ring the bell. So you get notifications. We put more videos up there. I’m The Our Shawn, I’ll be talking to you again very soon. Another video
Do you have an interest in the future of business?
Do you want to see what other people don’t see before they see it? And capitalize?
I do a number of shows themed on different aspects of the Future of Business. Feel free to subscribe to those that interest you – or more importantly subscribe and comment on the videos:
Future Done Right™ Show – My Flagship show – all about the future of business and what you need to know:
Women Business Leaders(TM) – Focused on lessons from one woman business leader to another with Lea Haben Woodford
Personality Assessments Done Right(TM) – Focused on what is working with personality assessments and how to get the most out of them for your business:
Best in Events! – Dedicated to what is working in events and planning with Lea Haben Woodford:
Influencer of Tomorrow(TM) dedicated to how to be a leader of tomorrow with George Hendley:
Great Sales Leaders(TM) – dedicated to bringing sales lessons from one leader to another with Shannon J. Gregg:
McBride Attorneys Law Show – dedicated to bringing the core tips that business owners need. Topics like partnership agreements that work, mergers, capital raising and contracts will be covered frequently:
Do Business Differently™ – Tips and tricks on Doing Business Differently™ and lessons from other business leaders:
My personal YouTube Channel for those that just want a little extra flavor of me (Less Business Focused):
Please sign up, comment and let me know what content you need. Join the fun!
Posted In: UncategorizedAbout the AuthorR. Shawn McBride — is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride Law Firm or call (214) 418-0258.