Is the 500 Shareholder Limit imposed on private companies a concern? Not for most Companies. Crowdfunding investors who become shareholders of your company will not count toward the shareholder limit for private companies, but only if the company is:
- current in its annual reporting obligations,
- retains the services of a registered transfer agent to keep records of the crowdfunding investments; and
- has less than $25 million in total assets as of the end of its most recently completed fiscal year.
Our mission is to make this new financing avenue as simple and transparent as possible for companies and investors together.