Regulation A

Exemption from registration for public offerings

REGULATION "A" AND THE "MINI-IPO"

The U.S. Securities and Exchange Commission (SEC) defines Regulation A as “an exemption from registration for public offerings”. It is also referred to as a mini-IPO (initial public offering) because there are fewer disclosure requirements and lower costs.

Under Regulation A, there are two tiers known as Tier 1 and Tier 2, which allow offerings of up to $20 million and $50 million, respectively, in a 12-month period. The two tiers of Regulation A share requirements such as their manner of offering, disclosure requirements, and general solicitation allowances.

These tiers differ in many areas, but the most notable distinction is that Tier 1 requires the sponsor to receive permission from every state in which an investor is located. In most cases, the time and cost of acquiring permission from each state, as required by Tier 1, makes Tier 2 the better choice.

If you have more questions about Regulation A or Crowdfunding, click here.

Crowdfunding Lawyers

We are here to be your team of Syndication Attorneys
for real estate and business, and Crowdfunding Attorneys
to help your business reach new heights!
SCHEDULE A FREE CONSULTATION
1431 E. McKinney St. #130
Denton, TX 76209