Important Note

Offering your company's stocks, shares, or securities to anyone in exchange for equity investment in your company carries significant responsibilities for you under both federal and state securities laws. It is critical that you understand and comply with all legal requirements in the securities offering process. Any mistake you make in seeking equity financing may not only lead to serious personal liability, including criminal sanctions, but it can also affect your companys ability to obtain further equity financing as any mistake you may poison the entire deal in later rounds.

Additionally, while it may appear that some of the documents involved in soliciting financing from potential investors can be prepared on your own, it is strongly urged that you consult qualified legal professional assistance in preparing and reviewing all your documents. Under securities laws, it is critical that the offering documents you provide to potential investors contain all necessary disclosures.

Entrepreneurs are further encouraged to work with an experienced securities attorney to develop a comprehensive compliance plan specific to your proposed offering, prior to initiating any discussions with a potential investor.