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

Crowdfunding in New York

To use crowdfunding to raise money without violating securities laws in New York, you must comply with the requirements of the New York State Securities Act and the federal Securities Act of 1933.

Requirements for Crowdfunding in New York

The New York State Securities Act requires that all securities offerings in New York be registered with the New York State Department of Law, unless an exemption applies. The federal Securities Act of 1933 also requires that all securities offerings be registered with the Securities and Exchange Commission (SEC), unless an exemption applies.

There are several exemptions from registration that may be available for crowdfunding offerings, including the federal crowdfunding exemption and the New York State crowdfunding exemption.

The federal crowdfunding exemption allows companies to raise up to $5 million in a 12-month period from both accredited and non-accredited investors through a registered crowdfunding portal. The offering must comply with certain disclosure requirements and other rules.

The New York State crowdfunding exemption allows companies to raise up to $5 million in a 12-month period from New York residents through a registered crowdfunding portal. The offering must comply with certain disclosure requirements and other rules.

It is important to consult with a securities attorney to ensure compliance with all applicable laws and regulations.

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Source(s):

• [1.1] New York insurance exchange
• [2.2] Criminal history records search for certain employment, appointments, licenses or permits in the city of New York
• [1.2] Miscellaneous
• [1.3] Constitution and by-laws
• [4.2] Effect on existing laws; transition period
• [5.1] Application

Jurisdiction

New York

• General