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

Crowdfunding in Montana: Requirements and Securities Laws

Crowdfunding is a popular way for small businesses to raise capital. In Montana, crowdfunding is regulated by the Montana Securities Act. To use crowdfunding to raise money without violating securities laws in Montana, you must comply with the following requirements:

  1. Use a registered crowdfunding portal: In Montana, crowdfunding must be conducted through a registered crowdfunding portal [3]. The portal must be registered with the Montana Securities Department and must comply with the requirements of the Montana Securities Act.
  2. Limit the amount of money raised: The amount of money that can be raised through crowdfunding in Montana is limited to $5 million in a 12-month period [3].
  3. Provide investors with certain information: Before investing in a crowdfunding campaign, investors must be provided with certain information, including a description of the business, the terms of the investment, and the risks associated with the investment [3].
  4. Limit the amount of money invested: Investors in Montana are limited in the amount of money they can invest in a crowdfunding campaign. The limit is $5,000 per investor, per offering [3].
  5. Comply with federal securities laws: In addition to complying with Montana securities laws, crowdfunding campaigns in Montana must also comply with federal securities laws, including Regulation Crowdfunding [3].

If you violate securities laws in Montana, you may be subject to civil and criminal penalties. It is important to consult with a securities attorney to ensure that you comply with all applicable laws and regulations.

[3] provides detailed information on the requirements for crowdfunding in Montana.

Source(s):
Jurisdiction

Montana