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Re: gitreal post# 24108

Thursday, 03/29/2018 1:49:29 PM

Thursday, March 29, 2018 1:49:29 PM

Post# of 47700

Reasons to Consider Not Using Form D

There are many exemptions from registering with the SEC, but companies usually stick with Form D because it provides the most benefits. That's why there are very few reasons to consider not using Form D. These include the following:

You've decided to make a public offering of securities for funding.

You want to keep the names of your investors from becoming public knowledge.

Filing Form D makes it easy for the public to find all of your company's information. However, there are some businesses that wish to maintain anonymity for their investors. For this reason, business owners should take a moment to consider whether making their information public might actually hurt the company.



A company wants to keep its investors confidential, so it registers with the SEC instead of filing Form D. By doing so, they must now learn the registration laws of every state they do business in and file the appropriate paperwork. Some states require a similar form, but anyone filing Form D will have a much easier time with state law.



A company decides to seek an exemption other than under Regulation D. They will again have to figure out state law, and the filing process will be much more complicated than simply filing Form D.