Legal Question in Business Law in Maryland

As part of perk of crowdfunding campaign, is it legal to credit their contributions toward future company's share ownership?

I have a start up company and getting ready to do a crowdfunding for a project. As part of campaign perks, is it legal to offer credit toward purchasing company's share in future? The company can evaluate its share valuation after the project is completed.

Asked on 1/25/19, 8:06 am

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

The scenario posed wades into what can quickly become complex questions of securities law. Very generally speaking, soliciting money in exchange for future interests in a company starts to sound like a public offering which would fall under so-called 'Blue Sky' laws which mandate various registrations and disclosures.

It would be well advised to run any scenario past a securities lawyer before attempting to round up money. Maryland's office of the Attorney General supervises securities in this state. Their website can be accessed at the following link:

This online post doesn't offer legal advice or suggest representation for any specific fact pattern. Instead, it tries to share general statements related to the law. You should consult with an attorney to get legal advice specific to your situation.

Read more
Answered on 1/25/19, 12:00 pm

Related Questions & Answers

More Business Law questions and answers in Maryland