Regulation D is an opportunity for your small business to go public and get access to working capital.
Regulation D financing is an opportunity for your small business to go public because of exemptions granted to smaller companies by the SEC. The exemptions allow smaller businesses to sell securities without having to go through a lengthy registration process. If your business decides to go this route for financing you will have to do a little paperwork, but it isn’t bad. The SEC requires just simple information like the name and addresses of the owners and stockholders.
There are many benefits to going public, but there are also some things you need to know before you go public with your business. There is a lot of work involved with being a public company because you have to keep all shareholders informed about business operations, financial status of the company, keep them updated on the management. All of this extra reporting will take extra time and money, so it is important to understand that your work load will increase, so you need to weigh the benefits with the cost.
You could become personally liable if you fail to report any information on the status of your business to the shareholders. The other drawback for many entrepreneurs who choose to go public with their small business is that they lose partial control of the business because most decisions have to be approved by shareholders, or a board of directors. It will take extra time and money to go public with Regulation D.
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