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Can I use crowdfunding to raise money without violating securities laws in Washington? What are the requirements?
Requirements for Crowdfunding in Washington State
To use crowdfunding to raise money without violating securities laws in Washington, you must comply with the requirements set forth by the Washington State Securities Division.
According to the Crowdfunding Frequently Asked Questions[4], you must provide appropriate disclosure using the Washington Crowdfunding Form. Additionally, advertising requirements must be met. Advertisements for crowdfunding offerings must include a disclaimer that the offering is only available to Washington residents and that the Washington State Securities Division has not reviewed or approved the offering.
SEC Crowdfunding Rules
The SEC has also established rules for crowdfunding offerings. The Final Rule: Crowdfunding[3] allows companies to raise capital through securities offerings using the internet through crowdfunding. However, there are limitations on the amount that can be raised and the amount that can be invested by individual investors.
It is important to note that the SEC rules and Washington State requirements must both be followed in order to conduct a legal crowdfunding offering in Washington.
Therefore, to answer your question, you can use crowdfunding to raise money in Washington as long as you comply with the requirements set forth by the Washington State Securities Division and the SEC Crowdfunding Rules.
Source(s):
Jurisdiction
Washington