Crowdfunding Regulations – Issuer Rules

This May, the U.S. Securities and Exchange Commission’s highly anticipated equity crowdfunding rules (the “Crowdfunding Rules”) took final effect. A product of the Jumpstart Our Business Startups Act of 2012, crowdfunding has, for some time, been acclaimed an evolutionary capital raise mechanism. Through crowdfunding, start-ups and emerging companies can cast a wide net in acquiring muchneeded, and often hard-to-find, early-stage funding. In its original form, crowdfunding was an unregulated, reward-based system under which small businesses would use online host platforms, such as, to seek out and raise capital from investors to fund their operations and push trendy ideas and initiatives to market. In return for their monetary contributions, investors would receive nominal gifts from the issuer in lieu of any actual equity stake in the company. Under the Crowdfunding Rules, investors are now able to make similar monetary investments in return for some form of equity, ownership or economic interest. Crowdfunding – P1

We have committed ourselves to assisting our clients in making well-informed, productive and ultimately successful decisions on all issues that come before them.

We take pride in on our ability to provide each client with the attention to detail and high level of service that their transactions require, while at the same time providing practical and business-oriented advice and solutions.

Current News and Events

  • To Click or Not to Click, That is the Question: Enforceability of Terms of Use in an Online Economy

    Whether you operate an informational health blog, an on-demand grocery delivery iOS application or a web-based e-commerce marketplace, the importance of a well-tailored and business-specific Terms of Use agreement is essential in protecting your online business and mitigating legal exposure. Commonly referred to as "Terms of Use," "Terms of Service" or "Terms and Conditions" (for purposes of this article, collectively, "Terms of Use"), these agreements are the rules (or, in many cases, binding legal contracts) that an end-user agrees to when accessing or using the services of a web-based or smartphone application. Terms of Use Article v2 Read More

  • Nonprofit Organizations: Is It Time to Update the Bylaws?

    Together with the corporate charter on file with any nonprofit organization’s home state, the bylaws comprise the nonprofit organization’s key legal documents and a roadmap for how a particular organization will function. In particular, the nonprofit organization’s bylaws regulate critical matters including, without limitation, the charitable purpose(s) of the organization, the size and function of the governing body as well as the election, terms and duties of the organization’s directors and officers. A nonprofit organization’s bylaws must also include language affirming requirements and prohibitions for nonprofit 501(c)(3) organizations as set forth by the Internal Revenue Service (“IRS”). As a nonprofit organization grows or modifies its purpose, its bylaws should be amended and updated to reflect the changes. Nonprofit Bylaws Alert Read More

Rhode Island · Massachusetts · New York · Florida