Thinking of Raising Money for Your Company? IF DOING A REG. D, GET THE PAPER VERSION OF FORM D BEFORE DOING YOUR ELECTRONIC FILING
Dr. Donald Moine
Donald Moine, Ph.D., Industrial and Organizational Psychologist specializing in Sales, Marketing, Financial Services and Business Funding. Executive Coach. International Consultant. Speaker. Author.
Thinking of Raising Money for Your Company?
IF DOING A REG. D, GET THE PAPER VERSION OF FORM D
BEFORE DOING YOUR ELECTRONIC FILING
Are you thinking of raising money to fund the growth of your company?
Contrary to what many people think, the SEC does not have an exemption for small raises or for "friends and family" raises of capital.
One popular way of raising money is with a Reg. D offering.
Please note that if you are going to do a Reg. D offering, within 15 days of your FIRST stock sale, you must file a Form D with the SEC.
That's right--within 15 days.
Please also note that you can only file Form D online and you have to FIRST sign up for the EDGAR system and get a CIK number to file Form D online.
There is no charge to sign up for EDGAR and no charge to get your CIK number.
So sign up for EDGAR now and get your CIK number now even if you think you might not be selling any stock for several months.
Then, if you decide to raise money using the Reg. D exemption, you will be all set to quickly file your Form D.
You only have one hour to file Form D online after you have typed in your last keystroke so I suggest you get all of your ducks in a row before you start filling out Form D online.
You can find a paper version of Form D online. I would suggest you print out this paper version of Form D and fill it out without any time pressure.
Then it will be very easy and stress-free to enter the online when filing Form D.
The good news is, Form D is relatively simple as federal forms go and it is not that long.
It is always good advice to hire a securities lawyer if you are going to raise money and your lawyer can file Form D for you.
You can save some money if you fill out the paper version of Reg. D send send it to your securities attorney to double check before he or she submits it.
Here is some more education from the SEC website:
"Form D is used to file a notice of an exempt offering of securities with the SEC. The federal securities laws?require the notice to be filed by companies that have sold securities without registration under the Securities Act of 1933 in an offering made under Rule 504 or 506 of Regulation D or Section 4(a)(5) of the?Securities Act.
A company must file this?notice within 15 days after the first sale of securities in the offering. For this purpose, the date of first sale is the date on which the first investor is irrevocably contractually committed to invest. If the due date falls on a Saturday, Sunday or holiday, it is moved to the next business day.
The SEC does not charge any filing fee for a Form D notice or amendment.
Form D notices and amendments must be filed online using the SEC's EDGAR (Electronic Data Gathering, Analysis and Retrieval) system.
To file using the EDGAR system, a company must have its own filer identification number (called a “Central Index Key” or “CIK” number) and a set of password-like “access codes.”
A company can obtain a CIK number and EDGAR access codes at any time, even well before it?is ready to file its first online Form D notice.
To get them, the company must complete and submit an application for EDGAR access online through Form ID."
If you can't find a paper version of Form D on-line, email me and I will email it to you as a PDF.
Dr. Donald Moine
Founder of the LinkedIn Group
"Raising Money, Reg. D, A, C and More."
Free to join