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

Requirements for Crowdfunding in Missouri

To use crowdfunding to raise money in Missouri, you must comply with both federal and state securities laws. The federal securities laws require that you either register your offering with the SEC or rely on an exemption from registration. One such exemption is Regulation Crowdfunding, which allows companies to raise up to $5 million in a 12-month period from both accredited and non-accredited investors [1].

Missouri has also adopted its own crowdfunding exemption, which allows companies to raise up to $2 million in a 12-month period from Missouri residents only. To qualify for this exemption, you must meet certain requirements, including:

  • The issuer must be organized under Missouri law and have its principal place of business in Missouri.
  • The issuer must not have more than $25 million in assets.
  • The offering must be conducted through a registered Missouri crowdfunding portal.
  • The issuer must provide certain disclosures to investors, including financial statements and a description of the business and the offering [4].

Conclusion

To use crowdfunding to raise money in Missouri, you must comply with both federal and state securities laws. The federal exemption for crowdfunding is Regulation Crowdfunding, which allows companies to raise up to $5 million in a 12-month period from both accredited and non-accredited investors. Missouri has also adopted its own crowdfunding exemption, which allows companies to raise up to $2 million in a 12-month period from Missouri residents only. To qualify for this exemption, you must meet certain requirements, including using a registered Missouri crowdfunding portal and providing certain disclosures to investors.

Source(s):
Jurisdiction

Missouri