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

Crowdfunding in New Hampshire

Crowdfunding is allowed in New Hampshire under RSA 421-B. However, there are certain requirements that must be met to avoid violating securities laws.

According to RSA 421-B:3-III, crowdfunding issuers must comply with the following requirements:

• The issuer must be organized under the laws of New Hampshire;
• The issuer must file with the New Hampshire securities division a notice of intent to offer securities through crowdfunding;
• The issuer must provide investors with a disclosure document that includes information about the issuer, the securities being offered, and the risks associated with the investment;
• The issuer must limit the amount of securities sold to any investor in a 12-month period to $5,000, unless the investor is an accredited investor;
• The issuer must use a crowdfunding portal registered with the New Hampshire securities division to offer and sell the securities.

Failure to comply with these requirements may result in penalties under RSA 143:17 ^[1.2].

Therefore, to use crowdfunding to raise money without violating securities laws in New Hampshire, you must comply with the requirements outlined in RSA 421-B:3-III.

Source(s):

• [1.2] Penalty for Violating Requirements.

Jurisdiction

New Hampshire

• General