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

Requirements for Crowdfunding in Arkansas

To use crowdfunding to raise money in Arkansas without violating securities laws, you must comply with the requirements of Regulation Crowdfunding [1]. Some of the key requirements are:

  1. Maximum Offering Amount: The maximum amount that can be raised through crowdfunding is $1,070,000 [1].
  2. Disclosure Requirements: The issuer must provide certain disclosures to investors, including financial statements, a description of the business, and the use of proceeds [1].
  3. Limits on Advertising: The issuer may not advertise the terms of the offering except in a notice that directs investors to the intermediary’s platform and includes limited information [1].
  4. Limits on Investment: There are limits on the amount that individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period [3].

Additional Considerations

In addition to the requirements of Regulation Crowdfunding, there may be other securities laws and regulations that apply to crowdfunding in Arkansas. For example, private fund advisers must obtain annual audits [2]. It is important to consult with a legal professional to ensure compliance with all applicable laws and regulations.

Conclusion

To use crowdfunding to raise money in Arkansas without violating securities laws, you must comply with the requirements of Regulation Crowdfunding, including the maximum offering amount, disclosure requirements, limits on advertising, and limits on investment. It is also important to consider any other applicable securities laws and regulations.

Source(s):
Jurisdiction

Arkansas