A friend of mine told me about the possibility of using indiegogo to fund business startups. I like the idea that they allow more physical/business related products.
However my growing concern is SEC regulation of crowdsourced funding. A friend sent me a document put out by the SEC that essentially stated that US regulations limit you to a potential investor pool of 35 before you have to develop a formal corporation w/ shareholder meetings and the like. I'm trying to avoid this on the startup I'm working towards as a LLC would be the best corporate structure (We're buying>rehabbing rental properties).
The primary issue is that I need $50,000 per property we purchase and with that 35 investor limit, it would come down to $1500/investor. I would prefer to take funds from joe-schmoe @ $25-$100 per share in the properties to spread out risk to everyone involved. However this limitation would make this impossible unless I'm not aware of some *trick*. Maybe the answer is just doing a corporation then doing online shareholder meetings if that's possible.
However my growing concern is SEC regulation of crowdsourced funding. A friend sent me a document put out by the SEC that essentially stated that US regulations limit you to a potential investor pool of 35 before you have to develop a formal corporation w/ shareholder meetings and the like. I'm trying to avoid this on the startup I'm working towards as a LLC would be the best corporate structure (We're buying>rehabbing rental properties).
The primary issue is that I need $50,000 per property we purchase and with that 35 investor limit, it would come down to $1500/investor. I would prefer to take funds from joe-schmoe @ $25-$100 per share in the properties to spread out risk to everyone involved. However this limitation would make this impossible unless I'm not aware of some *trick*. Maybe the answer is just doing a corporation then doing online shareholder meetings if that's possible.