Business meeting

Use an exempt offering to raise capital

Under the federal securities laws, every offer and sale of securities, even if to just one person, must be either a public offering registered with the SEC or conducted under an exemption from registration.

Reporting requirements document

Not all exempt offerings are the same

The requirements for different exempt offerings are not the same:

  • Reg A, Tier 1
  • Reg A, Tier 2
  • Reg CF
  • Reg D, Rule 504
  • Reg D, Rule 506(b)
  • Reg D, Rule 506(c)
Compliance reporting flowchart

Compliance after the raise

Keeping investors informed and staying compliant with SEC reporting requirements after the raise is more than filling out a few forms.

Chart showing costs

Managing the cost of disclosure

The SEC thinks you should spend a lot on compliance – we don’t.

Planning ahead

The value of quality reports

In addition to maintaining compliance with the SEC’s rules and regulations, on-going reporting has other benefits. Customers, suppliers, vendors, and current and possible future employees all want to know they are working with or for someone legitimate. Also, quality post-close reporting has the benefit of providing an information base from which a secondary market in an issuer’s securities may be built.

SEC Compliance Graphic

SEC Compliance

Reporting requirements

In addition to detailing disclosure rules pursuant to which an issuer may offer and sell securities, the SEC also specifies after-market reporting requirements.

Capital Raising Exemptions
Regulatory Compliance Concept

Cost and Effort

Typical disclosure costs and time required

Compare our pricing to the SEC’s estimates of the time and cost of preparing and filing certain required forms. The reason the SEC cost estimates are as high as they are is that each report is normally prepared on a custom basis with minimal automation. We are aiming to reduce these costs, yet still provide a high-quality, easy to read and understand report.

View Typical Disclosure Costs
Team working on compliance submissions
Abstract graphic showing a process

Download our PDF FAQs

Stock certificate document

Download our Securities backgrounder.

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