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

Crowdfunding in Oklahoma

Crowdfunding is a method of raising capital through the internet by soliciting small individual investments or contributions from a large number of people. In Oklahoma, crowdfunding is regulated by the Oklahoma Securities Commission (OSC) under the Oklahoma Uniform Securities Act (OUSA).

Requirements for Crowdfunding in Oklahoma

To use crowdfunding to raise money in Oklahoma, you must comply with the following requirements:

1. Registration: If you plan to offer securities through crowdfunding, you must register with the OSC or qualify for an exemption from registration.
2. Disclosure: You must provide investors with all material information about your business, including financial statements, risks, and how the funds will be used.
3. Investment Limits: The amount individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period is limited.
4. Intrastate Crowdfunding: You can only offer securities to Oklahoma residents.

Exemptions to Registration

The OSC provides exemptions to registration for certain types of crowdfunding offerings, including:

1. Intrastate Crowdfunding: If you only offer securities to Oklahoma residents, you may qualify for an exemption from registration.
2. Regulation Crowdfunding: If you comply with the requirements of Regulation Crowdfunding under the JOBS Act, you may qualify for an exemption from registration.

Conclusion

To use crowdfunding to raise money in Oklahoma, you must comply with the registration and disclosure requirements of the OUSA, as well as the investment limits for non-accredited investors. You may also qualify for exemptions from registration if you only offer securities to Oklahoma residents or comply with Regulation Crowdfunding under the JOBS Act.

Jurisdiction

Oklahoma

• General