LEGAL COUNSEL FOR CROWDFUNDING

There are number of law firms which offer themselves as experts on crowdfunding. Many of the crowdfunding sites offer templates or other information to eliminate, or nearly eliminate, the need for a specialized lawyer. There are a number of critical provisions in regulation CF which must be followed to the letter. These primarily involve the issue of integration  (limitation on $1 million offering per 12 months) and advertising. In particular, an issue has to be very careful that it does not provide illegal advertising of the offering on its company website, or in solicitations to customers or other persons. If these provisions are not followed carefully, any investor would have the right to have all the money returned. This is not a situation which the company was to find itself in.

Therefore, it behooves an issuer to receive a minimal level of legal assistance and at least use checklists and written guides to ensure that it complies with the rule.