Localfund.com - All about Fund and Investment
*Home>>>Raise Capital

DPO: Rule 504 @ $1 million or Reg "A" @ $5 million?


We have started a company. We need to raise capital and would like to do it via a DPO. Is there a fixed or unlimited amount of times that we can file with the state agency a $1 million DPO via Rule 504? If the $1 million Rule 504 DPO can only be done once, then filing a $5 million DPO with the SEC under Reg. "A" would seem more logical. We would prefer doing 3 or 4 Rule 504 $1 million DPO's (as financial needs dictate for the current time/status) than doing a $5 million Reg "A" DPO when really we don't need that much capital. Please advise. Thanks.

You can raise 1 million per year using Rue 504. To raise more in a year, you will need to register with the SEC.

from answers.com:
"The most common type of DPO is known as a Small Corporate Offering Registration, or SCOR. The SEC provided this option to small businesses in 1982, through an amendment to federal securities law known as Regulation D, Rule 504. SCOR gives an exemption to private companies that raise no more than $1 million in any 12-month period through the sale of stock."

Tags
  Seed Capital   Return Investment   Real Money   Real Estate Investment   Raise Capital   Property Investment   Profitable Investments   Private Investment
Related information
  • Corporate Credit?

    If you mean the working Capital/Operational Capital then you should know that any loans or lines of credit are liabilities and will be separated from your capital in the balance sheet. They would r...

  • How do I go about starting a business as a Petrol Retailer?

    You would best try to get a franchise with an oil company. Not sure about NI but many forecourts are run this way. Generally the sites are already there or being built and you 'manage' th...

  • All the money in stock market (secondary market), what is the usefulness?

    The secondary market makes the primary market work. If there was no secondary market, far fewer people/institutions would be interested in the primary market. Why buy a new issue if there is no w...

  • What is the procedures for listing in pink sheet or OTCBB?

    sorry i have never heard of it.

    ...
  • What's the best way to explain how a company makes money when going public?

    The same way it made money before the offering. ;-) Actually, in the initial public offering (IPO) of their stock, the company receives the net proceeds of the stock it sells. That is, the rem...

  • How does an IPO make you rich?

    When a company goes public, which is a long, complicated and very expensive process its equity or a portion of it is granted to the public at large to be traded freely. An underwriter, usually a...

  • Can a limited liability company issue issue/sell stock?

    You should check with your state, but I believe an LLC has the right to sell financial interests (stock) to outside parties, and has the ability to determine if it is voting or not.

    ...
  • Wachovia: To Hold or to Sell?

    I own shares and I am holding on; it is in a broken sector though and it may take time to shake off the volitility as well as the overhead resistance if it is going to move back up. Keep in mind...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster