4 ms·

Part of the reason is that having even a single non-accredited investor will require the company to collect and make available a significant amount of financial

Part of the reason is that having even a single non-accredited investor will require the company to collect and make available a significant amount of financial information -- defeating the whole point of the private placement which is to avoid all that paperwork.

dweekly 5y ago
This isn't really true under the friends and family exception. I'd consult counsel if you're unsure who it's okay to take funds from and with what restrictions.