CHAPTER 4
Preparing Your Company for a Crowdfunded Offering
Having decided that your company is a good candidate for a Title III crowdfunded offering, you will need to do several things before you begin drafting your offering statement, contacting funding portals, and taking the other steps necessary to launch the offering that we will discuss in Chapter 5.
Choose the Right Legal Entity
Regulation Crowdfunding requires that an issuer of crowdfunded securities be “incorporated or organized.” Unincorporated businesses such as sole proprietorships and partnerships do not qualify for crowdfunding.
That leaves only three types of legal entities that legally qualify for Title III crowdfunding:
1.Regular or C corporations
2.Subchapter S corporations ...
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