Regulation D?

stonesledgestonesledge Posts: 8subscriber
edited November 2007 in Growth Funding
I would like to know more about Regulation D. Anyone have any information that they can share?
 
Thank you,
Erin

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Regulation D is part of the Federal securities law. It defines 3 exemptions from the requirement for all securities to be registered with the SEC before sale.
    Here is a link to to some FAQ`s about Reg D = http://www.sec.gov/answers/regd.htm</A>
    Do you have a specific question?
     
  • stonesledgestonesledge Posts: 8subscriber
    Hi Robert,
    thank you for responding. Yes, how does this work when selling membership units and how should the percentage work? How long is this process? Is there an easier agreement when someone is interested in an equity buy in?
     
    Thank you for the help.
     
    Erin
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Erin,
    1. Re: membership units. Membership units in an LLC are a security, so the offer and sale is subject to the SEC regulations - just like for a corporation. There is some difference in the preparation of documents but basically it works the same.
    2. Percentage. Here again the basics are the same for an LLC as a Corporation. Ultimately the price per unit is tied to a "valuation" of the company.
    3. How long is the process:  Depending upon the stage of the company and assuming there is a reasonably complete business plan in existence - the documents can be completed in a couple of weeks.
    4 Is there an easier agreement? I`m not sure exactly what you mean by easier. As a general answer - it depends, on several factors.
    There are disclosure documents and transaction documents.  Disclosure requirements are defined according to the specific exemption used. For example:  Reg D-506 requires "full" disclosure - which is accomplished via a Private Placement Memorandum (PPM).
    The transaction document (often a subscription agreement) should be designed to properly protect all parties by clearly conveying the terms of the transaction.
    If you`d like to discuss your specific situation - send me a PM
     
  • stonesledgestonesledge Posts: 8subscriber
    Robert, Thank you...for the information and advice that you gave. I appreciate your help.
    Erin
  • mattsindmattsind Posts: 0subscriber
    RobertJ,
    I`ve seen you name many times in this forum.  I`ve also noticed that your posting are quited informative and educational.
    I have grown quite curious about you.
    Are you in the business of making businesses better, or are just speaking from years of varied experience?
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Mattsind,
    Thanks for the complement.
    I guess the answer to your question is -both.  I have "been around" and gathered a lot of experience in different situations. For these past few years, my business has been geared toward and focused on  helping early stage businesses by enabling/facilitating their access to capital.
    All the best
  • mattsindmattsind Posts: 0subscriber

    Mattsind,Thanks for the complement. I guess the answer to your question is -both.  I have "been around" and gathered a lot of experience in different situations. For these past few years, my business has been geared toward and focused on  helping early stage businesses by enabling/facilitating their access to capital. All the best

    I will enjoy being enlightened further as I continue through the different threads in this forum. 
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    I will enjoy being enlightened further as I continue through the different threads in this forum. 
    If you have specific questions, you can send me aw PM
  • mattsindmattsind Posts: 0subscriber


    I will enjoy being enlightened further as I continue through the different threads in this forum. 
    If you have specific questions, you can send me aw PM

    Actually, just reading your posts in various threads, like this one, has taught me a great deal.
    You are certainly an asset to this forum.
    I glad I joined.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    I`m gald I am able to help and we are glad you joined
     
    Happy Holiday
  • dms8555dms8555 Posts: 0subscriber
    I too have learned a lot from you ...
    My partner and I are now about 2 years into our business (6 months actually open) and we find ourselves in need of an unsecured line of credit to consolidate the debt we have built up.
    How would you suggest we go about it?
    THanks
    Donna
    whats4dinnerinc.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member

    I too have learned a lot from you ...My partner and I are now about 2 years into our business (6 months actually open) and we find ourselves in need of an unsecured line of credit to consolidate the debt we have built up.How would you suggest we go about it?THanksDonnawhats4dinnerinc.
     Donna,I somehow overlooked this post when you originally put it up.Did you find a solution to your situation?If not, how much capital are you seeking?
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