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

Requirements for Crowdfunding in Nebraska

Crowdfunding is a way to raise money for a business venture by soliciting small investments from a large number of people, typically via the internet. In Nebraska, crowdfunding is subject to securities laws, which regulate the sale of securities to the public.

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

  1. Register with the Nebraska Department of Banking and Finance [1].
  2. File a notice with the Securities and Exchange Commission (SEC) [4].
  3. Provide investors with certain disclosures, including financial statements and information about the risks of the investment [5].
  4. Limit the amount of money that can be raised through crowdfunding [5].
  5. Use a registered crowdfunding portal [4].

It is important to note that these requirements may change over time, and it is advisable to consult with a legal professional before engaging in any crowdfunding activities.

Conclusion

To use crowdfunding to raise money without violating securities laws in Nebraska, you must comply with certain requirements, including registering with the Nebraska Department of Banking and Finance, filing a notice with the SEC, providing investors with certain disclosures, limiting the amount of money that can be raised, and using a registered crowdfunding portal. It is important to consult with a legal professional before engaging in any crowdfunding activities.

Source(s):
Jurisdiction

Nebraska