Why You Need a FinCEN ID and When to Use it
Tuesday, October 29
Everyone in business should obtain a FinCEN ID. You can obtain one here. Your FinCen ID is unique to you as an individual. Think of it like a Social Security number that you only use for business. Yes, to get one, you have to provide your Social Security number to the government, along with oth...
Will SEC's New Definition of Accredited Investor Help Syndicators?
Wednesday, September 02
The expanded definition of an Accredited Investor finalized by the Securities & Exchange Commission on Aug. 26, 2020, may sound encouraging, but will it really be all that helpful for Syndicators raising money from private individuals (otherwise known as “Retail Investors”) ? It is not likely...
Which Fund Structure is Right for You?
Friday, May 08
There are multiple ways to set up a private equity fund. The most common types are described here: Whole Fund Model Under the Whole Fund or Blind Pool model, investors purchase interests in a pooled investment fund (the Fund), which is usually formed as a limited liability company (LLC) or a lim...
Navigating Private Lending Laws
Friday, February 28
QUESTION: What laws apply if you are raising funds from private lenders to: a) fund your real estate investing or private lending business, or b) if you are loaning their funds to others? When Securities Laws Apply If you are borrowing or pooling funds from private investors who are not in the bu...
Are You Raising Money Legally for Someone Else's Syndicate?
Friday, October 04
“Can I use a consulting agreement to raise money for someone else’s Syndicate?” I get this question all the time, and my answer is always the same. Only a licensed securities broker-dealer can raise money for a third party and earn a commission. As such, you cannot enter into an agreement to be a...
Guess What? Cryptocurrency is a Security! Are You Following the Law?
Tuesday, January 02
If you're using cryptocurrency for raising capital, be advised that you are dealing in Securities and must comply with U.S. federal Securities laws. It might seem odd that Securities Acts written in 1933 and 1934 could be applied to the latest computer technology. However, laws written by our fo...