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"Crowdfunding" expresses how businesses can provide rewards, borrow money and/or sell an ownership interest to the public using the internet.


Prior to the passage of the JOBS Act in April 2012, unless you were a publicly traded company, raising capital over the internet was illegal. The JOBS Act directed the Securities and Exchange Commission (SEC) to incorporate rules allowing businesses to fundraise by withdrawing the proscription on potential investor solicitation via the internet.


At present, SEC has released proposed rules (Click here to read proposed rules). 


Business owners considering crowdfunding to raise funds for your business should consider the following 5 suggestions to get ready:


1.   Engage on social media websites where potential investors maintain a profile.


2.   Prepare a business plan.


3.   Research crowdfunding platforms where your fundraising can potentially be hosted.


4.   Engage the services of an accountant to assist you in preparing financial documents.


5.   Contract the services of a filmmaker to tell your story via video.


Atlanta Georgia business attorney Bukhari Nuriddin has years of experience assisting businesses ranging from large, well-established companies to small start-up operations. His skilled legal team has the expertise and knowledge to help you move your business forward. For a complimentary consultation with an Atlanta Georgia business lawyer, contact The Nuriddin Law Company at (404) 480-0217.

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