Can I Use a Simple Compensation Agreement to Raise Money for Other People?

Can I Use a Simple Compensation Agreement to Raise Money for Other People?

You can’t use an agreement to get compensated for raising money for others unless:

a) You have a securities broker-dealer license (not a real estate broker’s license)  or

b) You, the opportunity and all investors are in California, where you can use a real estate broker’s license for this purpose or you can apply to the state to be a licensed “finder.”

Bottom Line: Unless you are in California, you must qualify for the “Issuer-exemption” that allows you to sell securities without a securities license. In order to do so, you have to be a member of the company that is selling the securities and do so under an appropriate securities exemption, such as Regulation D, Rule 506(b) or Rule 506(c).

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Are you ready to raise private capital?

At Syndication Attorneys LLC, we are committed to your success – book a consultation with one of our team members today!

Are you ready to raise private capital?

At Syndication Attorneys LLC, we are committed to your success – book a consultation with one of our team members today!

About Syndication Attorneys

We are NOT your stereotypical law firm. We don’t believe in simply taking your money, handing you a stack of technical, often-incomprehensible legal documents and then bidding you good luck and good-bye. At Syndication Attorneys PLLC, we are committed to your success – not just with the project at hand, but your continuing success in business and investing. We are your long-term legal team.

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Are you ready to raise private capital?

At Syndication Attorneys LLC, we are committed to your success – book a consultation with one of our team members today!