Small corporate offering registration can help take your small business public.
Small corporate offering registration allows small businesses to go public, and allows them to avoid all of the legal costs and regulations that larger traded firms endure. Going public can be an excellent way for a business to obtain capital if done properly. A small corporate offering registration is also referred to as an ‘over-the-counter’ sale of securities. This means that the security is not traded on an exchange. Instead it is traded directly between brokers and dealers either online or over the phone.
Small corporate offering registration is a government program that is also referred to as SCOR. Businesses can actually sell shares in their company online to large groups of investors. It can be difficult to get financed through SCOR, but it is worth looking into for most businesses. Many of the state government websites contain information about SCOR if their state supports it. One thing to also note is that you can still sell shares in your company even if your state doesn’t support it yet. You would just sell your shares to investors in other states.
Small businesses can raise up to $1 million dollars with SCOR. There are some limitations to which businesses can sell, but most states provide detailed information on the program. Other titles for this sort of financing are ‘direct public offering’ or DPO. Since this is a relatively new type of program it is important to gather as much information as possible before proceeding.
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