Selling Stock - SEC Rules - The 411 On Startups (tm)

When an Eight-Figure IPO Windfall Can Mean a Zero-Digit Tax Bill

Aug

2019

Shares are eligible for Qualified Small Business Stock (QSBS) if they’re issued when a company has gross assets of $50 million or less. If you hold on to the stock for at least five years, you can avoid taxes on $10 million of any gains when you sell. But that $10 million is only a ...

SEC OKs Equity Crowdfunding, So Anyone Can Invest In Private Companies | TechCrunch

May

2015

Earlier this week, the Securities and Exchange Commission (SEC) announced a new set of rules implementing Title IV of the JOBS Act. These changes affect Regulation A small public offerings, and are colloquially referred to as “Reg A+”. The release of these final rules further advances one of the core principles and goals of the ...

JOBS Act: 5 things to look forward to (and 5 to dread)

Apr

2012

Today, President Obama passes the JOBS (Jumpstart Our Business Startups) Act, a collection of laws that relaxes regulations on capital raising for startup companies and gives all companies more flexibility in how and when they go public. It’s the “crowdfunding” provisions of the JOBS Act that are getting the most attention, and for good reason. ...

Financing Your Startup: How to Sell Stock without Going to Jail

Sep

2011

As the founder of a startup, one of the first issues you need to address is how to finance your company’s operations. If you are lucky enough to be able to fund your startup out-of-pocket, or through generous family members, congratulations. You can probably skip the rest of this post and get back to building ...

Crowdfunding Gets a Hearing in the U.S. House

Sep

2011

Washington, D.C. (Press Release – September 15, 2011) – Small Business & Entrepreneurship Council (SBE Council) member and entrepreneur Sherwood “Woodie” Neiss brings his Crowd Fund Investing (CFI) framework to a congressional hearing today, where there is growing support to modernize outdated security laws that prevent small business owners from tapping into their networks for ...

Regulation – SEC Rule 144

Sep

2008

The Federal Securities Act of 1933 generally requires that stock and other securities must be registered with the Securities and Exchange Commission (the “S.E.C.”) prior to their offer or sale. Registering securities with the S.E.C. can be expensive and time-consuming. This article offers a brief introduction to SEC Rule 144, which allows for the sale ...

Rule 144: Selling Restricted and Control Securities

Sep

2008

When you acquire restricted securities or hold control securities, you must find an exemption from the SEC’s registration requirements to sell them in the marketplace. Rule 144 allows public resale of restricted and control securities if a number of conditions are met. This overview tells you what you need to know about selling your restricted ...

A Short Introduction to the Securities Laws for Entrepreneurs

Sep

2008

We are now going to look at some of the rules and types of offerings a company can make. From the point of view of a company issuing stock, the most important aspects of the rule are (1) how much stock can I sell, (2) what level of disclosure do I have to make, (3) ...

What is Form D and what information gets publicly disclosed to the SEC regarding a financing? : Startup Company Lawyer

Sep

2008

The SEC adopted new rules regarding Form D, which is routinely filed by companies for venture financings relying on one of the securities exemptions under Regulation D of the Securities Act. Regulation D is a exemption from the onerous registration requirements (i.e. a Form S-1 registration statement) of the Securities Act for a private placement ...

Regulation D: Selling stock without registration :: WRAL.com

Sep

2008

Among the myriad of issues an entrepreneur or business founder faces when starting a business is how to raise capital for the company. Some of the options available include bank financing, owner contributions, and private securities offerings. However, no matter how small the company or how small the amount of money being raised, a company ...