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

Requirements for Crowdfunding in Mississippi

To use crowdfunding to raise money in Mississippi without violating securities laws, you must comply with the following requirements:

1. Register with the Mississippi Secretary of State: You must register your crowdfunding offering with the Mississippi Secretary of State and provide all required information ^[2].
2. Limit the amount of money you raise: You cannot raise more than $1 million in a 12-month period through crowdfunding ^[2].
3. Limit the amount of money each investor can contribute: Investors who are not accredited cannot invest more than $5,000 in a 12-month period ^[2].
4. Use a registered crowdfunding portal: You must use a registered crowdfunding portal to offer and sell securities ^[2].
5. Provide disclosures to investors: You must provide certain disclosures to investors, including financial statements and information about the company and the offering ^[2].
6. Comply with federal securities laws: You must comply with all applicable federal securities laws, including Regulation Crowdfunding ^[2].

Conclusion

To use crowdfunding to raise money in Mississippi, you must comply with several requirements, including registering with the Mississippi Secretary of State, limiting the amount of money you raise, using a registered crowdfunding portal, and providing disclosures to investors. Additionally, you must comply with all applicable federal securities laws.

Source(s):

• [2] Crowdfunding, Capital Raising and Securities

Jurisdiction

Mississippi

• General