Regulation D grants issuers an exemption from registering their securities with the SEC. Our Regulation D offering services include Rule 506(b) and 506(c) offerings, permitting issuers to raise money from investors.
Regulation D grants issuers an exemption from registering their securities with the SEC. Our Regulation D offering services include Rule 506(b) and 506(c) offerings, permitting issuers to raise money from investors.
|
Rule 506(b) |
Rule 506(c) |
Limits on Offerings Within a Year |
Unlimited Dollar Amount |
Unlimited Dollar Amount |
General Solicitation allowed? |
None |
Yes |
Issuer Requirements |
‘Bad actor’ disqualifications |
‘Bad actor’ disqualifications |
Requirements for Investors |
Accredited investors: unlimited allowed |
Unlimited accredited investors allowed, but issuers must take precautions to ensure that investors are, in fact, accredited investors |
Resale Restrictions |
Yes. Restricted securities are issued and cannot be sold for a minimum of one year and selling them requires a legal opinion |
Yes. Restricted securities are issued and cannot be sold for a minimum of one year and selling them requires a legal opinion |
State Requirement Exemptions? |
Yes, but Blue Sky state notice may be required. |
Yes, but Blue Sky state notice may be required. |
SEC Filing Requirements |
Form D required. If non-accredited are investors involved, additional information is required |
Form D required |
Limits on Offerings Within a Year
Unlimited Dollar Amount
General Solicitation allowed?
None
Issuer Requirements
‘Bad actor’ disqualifications
Requirements for Investors
Accredited investors: unlimited allowed Non-accredited investors: up to 35 “sophisticated” investors
Resale Restrictions
Yes. Restricted securities are issued and cannot be sold for a minimum of one year and selling them requires a legal opinion
State Requirement Exemptions?
Yes, but Blue Sky state notice may be required.
SEC Filing Requirements
Form D required. If non-accredited are investors involved, additional information is required
Limits on Offerings Within a Year
Unlimited Dollar Amount
General Solicitation allowed?
Yes
Issuer Requirements
‘Bad actor’ disqualifications
Requirements for Investors
Unlimited accredited investors allowed, but issuers must take precautions to ensure that investors are, in fact, accredited investors
Resale Restrictions
Yes. Restricted securities are issued and cannot be sold for a minimum of one year and selling them requires a legal opinion
State Requirement Exemptions?
Yes, but Blue Sky state notice may be required.
SEC Filing Requirements
Form D required
Unlike other rules in Regulation D, Rule 506(c) allows you to solicit your offering. It states that the offering must be financed solely by accredited investors, and also that you must ensure every investor participating in your offering is accredited. Further, under Rule 506(c), you may advertise through all media, including brochures, posters, social media, and many more. This additional advertising capability allows you to increase your investor reach and consequently increase the amount of capital you raise. It can also be an effective way to compete with the offerings of rival companies. You will have the advertising advantage over companies not under Rule 506(c). We find that most issuers choose to do a 506(c) offering.
Utilizing our Cloudraise® software, we handle all of the following in your Reg D offering:
EquityTrack will help you conduct your Regulation D offering; our professional staff provides quality services that result in your successful offering.
Our experienced representatives maximize the capital you raise during your offering while maintaining your regulatory compliance. We prioritize both issuer and investor satisfaction to make your offering process as smooth as possible. Conduct a successful offering today with EquityTrack.
We are here to help with your offering, investor recordkeeping, and raising capital needs.