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Can I use crowdfunding to raise money without violating securities laws in Arizona? What are the requirements?

Requirements for Crowdfunding in Arizona

To use crowdfunding to raise money without violating securities laws in Arizona, you must comply with the Arizona Securities Act. The Act provides an exemption for crowdfunding under certain conditions [4][5].

To qualify for the exemption, the issuer must meet the following requirements:

  • The issuer must be organized under Arizona law and have its principal place of business in Arizona.
  • The issuer must not have more than $10 million in assets.
  • The issuer must not offer or sell securities through a broker-dealer or investment adviser.
  • The issuer must file a notice with the Arizona Corporation Commission at least 10 days before the first sale of securities.
  • The issuer must provide certain disclosures to investors, including financial statements and a description of the business and the offering.

If the issuer meets these requirements, it can offer and sell securities to Arizona residents without registering the securities with the Arizona Corporation Commission [4][5].

Conclusion

To summarize, you can use crowdfunding to raise money without violating securities laws in Arizona if you comply with the Arizona Securities Act. The Act provides an exemption for crowdfunding under certain conditions, including filing a notice with the Arizona Corporation Commission and providing certain disclosures to investors.

Source(s):
Jurisdiction

Arizona