I am trying to get a handle on start-up businesses and investors and what constitutes a business that would fall under SEC rules or need to file for a private offering. I've read some preliminary info on the SEC site and it seems options are very limited, yet I see all sorts of venture out their that would seem to fall under their rules, but don't.
Example: Can an individual with an idea seek investors to invest in the idea, incorporate, each investor gets their share of the corporation and happily pursue their business without worrying about SEC regs? Is their a limit on how many shareholders they could seek?
I know clients sell their corporations but it doesn't seem to fall under SEC rules, what exempts a sale of a private corporation from SEC rules (let's assume client a is selling business, advertises, buyer from out of state buys the business)
Any links/resources on this topic would be greatly appreciated.
Example: Can an individual with an idea seek investors to invest in the idea, incorporate, each investor gets their share of the corporation and happily pursue their business without worrying about SEC regs? Is their a limit on how many shareholders they could seek?
I know clients sell their corporations but it doesn't seem to fall under SEC rules, what exempts a sale of a private corporation from SEC rules (let's assume client a is selling business, advertises, buyer from out of state buys the business)
Any links/resources on this topic would be greatly appreciated.