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NC and SC Estate Planning and Elder Law Firm

Monday, May 29, 2017

A New Funding Option For North Carolina Businesses

If you have been active on social media lately you have probably seen someone raising money for a good cause via an online platform like GoFundMe. These crowdfunding campaigns take the concept of the coffee can on the gas station counter and bring it into the 21st century.

But do-gooders are not the only ones who are looking for funding online. Businesses have been eager to get into the crowdfunding game as well. One need only take a quick look at Kickstarter or other similar sites to see how popular the concept has gotten.

On such sites you can find lots of opportunities to donate money to a business you believe in in exchange for a t-shirt or other trinket, but a donation is just a donation. You don’t get in really return on your investment other than “good vibes” if the company ends up doing well.

What’s New in North Carolina?

Until recently, the only way a North Carolina business or start-up was able to do crowdfunding was to accept a donation or offer a product or service for sale. “Investors” in these companies were really only donors or customer since they got no ownership interest in exchange for their money. As of April 2017, however, the law has changed, and North Carolina businesses can now accept investments in exchange for a stake in the business through crowdfunding platforms.

The NC PACES Act – short for Providing Access to Capital for Entrepreneurs and Small Business Act –allows North Carolina startup companies or businesses to offer securities to non-accredited investors, and to advertise and conduct the sale of private stock via online platforms.   

It is important to note that this is still not a click, click, go process. There are a lot of rules and regulations that must be followed, or a business could get into big trouble. North Carolina business owners who want to take advantage of crowdfunding should consider working with an experienced business attorney to make sure all their i’s are dotted and t’s are crossed.

Can You Do Crowdfunding in South Carolina?

South Carolina also allows crowdfunded investing online. Its crowdfunding law has been on the books since 2015, and things seem to be going well.

Join the Crowd!

Crowdfunding is still a really new thing, but it is already a game-changer for businesses looking to grow and investors eager to get into the start-up market. Both North and South Carolina should see a positive impact as crowdfunding businesses becomes more mainstream.

If you are ready to dip your toe into the crowdfunding pool, whether as a business owner or an investor, don’t hesitate to reach out to our office with any questions you may have. Every state does crowdfunding a little bit differently, so it is important to know what the rules are where you are, whether you are a business owner or an investor.

ndMe. These crowdfunding campaigns take the concept of the coffee can on the gas station counter and bring it into the 21st century.

But do-gooders are not the only ones who are looking for funding online. Businesses have been eager to get into the crowdfunding game as well. One need only take a quick look at Kickstarter or other similar sites to see how popular the concept has gotten.

On such sites you can find lots of opportunities to donate money to a business you believe in in exchange for a t-shirt or other trinket, but a donation is just a donation. You don’t get in really return on your investment other than “good vibes” if the company ends up doing well.

What’s New in North Carolina?

Until recently, the only way a North Carolina business or start-up was able to do crowdfunding was to accept a donation or offer a product or service for sale. “Investors” in these companies were really only donors or customer since they got no ownership interest in exchange for their money. As of April 2017, however, the law has changed, and North Carolina businesses can now accept investments in exchange for a stake in the business through crowdfunding platforms.

The NC PACES Act – short for Providing Access to Capital for Entrepreneurs and Small Business Act –allows North Carolina startup companies or businesses to offer securities to non-accredited investors, and to advertise and conduct the sale of private stock via online platforms.   

It is important to note that this is still not a click, click, go process. There are a lot of rules and regulations that must be followed, or a business could get into big trouble. North Carolina business owners who want to take advantage of crowdfunding should consider working with an experienced business attorney to make sure all their i’s are dotted and t’s are crossed.

Can You Do Crowdfunding in South Carolina?

South Carolina also allows crowdfunded investing online. Its crowdfunding law has been on the books since 2015, and things seem to be going well.

Join the Crowd!

Crowdfunding is still a really new thing, but it is already a game-changer for businesses looking to grow and investors eager to get into the start-up market. Both North and South Carolina should see a positive impact as crowdfunding businesses becomes more mainstream.

If you are ready to dip your toe into the crowdfunding pool, whether as a business owner or an investor, don’t hesitate to reach out to our office with any questions you may have. Every state does crowdfunding a little bit differently, so it is important to know what the rules are where you are, whether you are a business owner or an investor.

 


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