Considering Crowdfunding as a Means for Raising Funds?
Have you ever thought about raising funds for your small business using online crowdfunding tools? Crowdfunding gives entrepreneurs the ability to raise funds by attracting relatively small amounts of money from large numbers of people. Through a provision in the Jumpstart Our Business Startups Act (JOBS Act), crowdfunding creates a means for allowing startups and small businesses to raise capital through securities offerings using the internet. The JOBS Act permits internet-based platforms, like kickstarter, rockethub and indiegogo, to facilitate the offer and sale of securities. In coming up with the rules, the SEC attempted to create protections for investors while enabling businesses to use crowdfunding effectively. Click on the following link to read the SEC press release and to get a rundown of the new JOBS Act rules pertaining to crowdfunding SEC Press Release 2015-49 .
The CPAs at Todd & Co. CPA Group understand the tax implications of raising funds through crowdfunding. We also understand the Securities and Exchange Commission’s rules, which help small businesses gain access to capital and take advantage of more investment choices. We can help you understand this innovative means for raising capital. Contact us at (757) 926-4109 to find out more.