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

Requirements for Crowdfunding in Ohio

Ohio provides an intrastate crowdfunding exemption from registration under the Ohio Securities Law ^[1]. However, to qualify for this exemption, you must meet certain requirements.

According to the Ohio Securities Bulletin ^[3], crowdfunding issuers must comply with the following requirements:

• The issuer must be organized under Ohio law and have its principal place of business in Ohio.
• The issuer must limit the offering to Ohio residents.
• The issuer must file a notice with the Ohio Division of Securities at least 10 business days before the first sale of securities.
• The issuer must provide investors with a disclosure document that includes certain information about the issuer and the offering.

Additionally, the SEC has regulations for crowdfunding under Title III of the JOBS Act ^[2]. These regulations limit the amount individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period and require disclosure.

Conclusion

If you meet the requirements outlined by Ohio law and the SEC regulations, you can use crowdfunding to raise money without violating securities laws in Ohio.

Source(s):

• [1] Final Analysis
• [2] Regulation Crowdfunding - SEC.gov
• [3] OHIO SECURITIES BULLETIN

Jurisdiction

Ohio

• General