A Good Day For Equity Crowdfunding

Yesterday was a good day for equity crowdfunding. Washington Governor Jay Inslee signed into law Washington HB 1593. This bill will make it easier for companies in Washington State to use Washington’s equity crowdfunding bill. If you like, you can watch the bill signing ceremony. Thank you Governor Inslee, Representatives Brandon Vick (R-Ridgefield) and Steve Kirby … Continue reading A Good Day For Equity Crowdfunding

Washington State Equity Crowdfunding Update

Good news! Senators Fain and Mullet have sponsored SB 5680 in the Washington State Senate. This is the same bill as HB 1593 in the House. The bill would make important technical improvements to Washington State’s equity crowdfunding law The highlights of the bill include: Allowing Delaware corporations to use Washington State’s equity crowdfunding law. … Continue reading Washington State Equity Crowdfunding Update

Washington State Equity Crowdfunding Update

My colleague Danny Neuman and I testified this morning in support of HB 1593. This bill would improve the Washington State equity crowdfunding law. The bill is sponsored by Representatives Vick and Kirby. HB 1593 Would Do a Number of Helpful Things HB 1593 would do the following: Eliminate the quarterly public disclosure of executive officer … Continue reading Washington State Equity Crowdfunding Update

Recommended Improvements to Washington’s Equity Crowdfunding Law

By Daniel Neuman.  I am a corporate and securities lawyer, working primarily with startups and early-stage companies in Seattle. I testified yesterday before the Washington State House of Representatives Business & Financial Services Committee regarding the state’s Equity Crowdfunding law, and presented a list of recommendations for how to improve the regulations and make the law … Continue reading Recommended Improvements to Washington’s Equity Crowdfunding Law

Intrastate Crowdfunding: SEC Adopts Helpful Rules

The SEC adopted final rules today to facilitate intrastate crowdfunding offerings. Intrastate Crowdfunding Intrastate crowdfunding is a phenomenon I am not sure many people anticipated. In the wake of the JOBS Act, when everyone was waiting for the SEC to finalize the Title III JOBS Act equity crowdfunding rules, states started passing their own laws. … Continue reading Intrastate Crowdfunding: SEC Adopts Helpful Rules

Intrastate Crowdfunding: SEC Meeting Next Wednesday

The SEC has announced that it is going to have a meeting next Wednesday, October 26, 2016, at 10:00 a.m. Eastern Time to consider whether to adopt rule amendments to facilitate intrastate crowdfunding offerings. The SEC might adopt an entirely new exemption for intrastate crowdfunding offerings. The trouble with the current intrastate crowdfunding legal landscape is that Section … Continue reading Intrastate Crowdfunding: SEC Meeting Next Wednesday

Crowdfunding Tax Advice From the IRS

Dan Wright and Joe Wallin If you are going to raise money through a crowdfunding campaign, you need to think through the tax consequences before you start. You might have to collect sales taxes. You might also have to pay federal income taxes on the funds you raise, in the year in which you receive … Continue reading Crowdfunding Tax Advice From the IRS

Washington State Equity Crowdfunding News

Ashley Stewart (@ashannstew) recently wrote a great piece in the Puget Sound Business Journal on Washington State equity crowdfunding titled “Crowdfailure: Not a single company has been able to use Washington’s 2-year-old crowdfunding law.” She also wrote an accompanying blog post. Washington State Equity Crowdfunding The article tells the story of a company frustrated at … Continue reading Washington State Equity Crowdfunding News

Crowdfunding Sales Tax Troubles

If you have run a successful crowdfunding campaign, you know what happens next. You owe a lot of sales tax. And you might not have appreciated what you were getting yourself into on the sales tax front. Crowdfunding Sales Tax Troubles There is a bill that has been introduced in the Washington State legislature that … Continue reading Crowdfunding Sales Tax Troubles

State Crowdfunding: The SEC’s Proposed Rules

I overreacted a bit in my last blog post when I said that Washington State’s crowdfunding law might be statutorily “broken” if the SEC’s proposed rules on Rule 147 were adopted. If you are not familiar with how the securities laws in this area are written, Rule 147 is the rule that interprets Section 3(a)(11) of the Securities Act. … Continue reading State Crowdfunding: The SEC’s Proposed Rules