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.
1 Answer from Attorneys
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: http://www.marylandattorneygeneral.gov/Pages/Securities/default.aspx
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.
Related Questions & Answers
I have recently discovered that my employer is commiting business fraud. I have... Asked 1/06/19, 6:50 am in United States Maryland Business Law
Greetings. My company has an annual company-wide team bonus that all of the FTEs... Asked 3/21/18, 8:22 am in United States Maryland Business Law
I registered a business in 2014 in Maryland through a registered agent but soon... Asked 1/23/18, 2:33 pm in United States Maryland Business Law
Do you have to register an online business in MD if you do not have any inventory? Asked 1/22/18, 11:44 am in United States Maryland Business Law