Search results for: crowdfunding

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 receiveContinue reading “Crowdfunding Tax Advice From the IRS”

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 atContinue reading “Washington State Equity Crowdfunding News”

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

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”

You might be wondering what I am talking about when I say that there is a 12(g) problem with equity crowdfunding. What is Section 12(g), anyway? Section 12(g) is a section of the Securities Exchange Act of 1934 that requires companies to start reporting as a public company if they allow themselves to have tooContinue reading “Equity Crowdfunding: The 12(g) Problem”

The SEC has proposed amendments to Rule 147. The trouble is, the proposed rules would take away one of the federal law support beams for Washington State’s equity crowdfunding law. Our statute requires compliance with Section 3(a)(11) of the Securities Act of 1933, as amended, and Rule 147, and the SEC has proposed that Rule 147 no longerContinue reading “Washington State Crowdfunding Law in Jeopardy?”

The final Title III Equity Crowdfunding rules contain a number of changes from the proposed rules. Some of the changes are good, and some are arguably not so good. On the good side: First time issuers raising more than $500,000 and up to $1 million will not have to have their financial statements audited. Instead,Continue reading “Title III Equity Crowdfunding: The Final Rules”

If you want to comment on the SEC’s proposed amendments to Rule 147, the deadline is Monday. Rule 147: What Has The SEC Proposed In general, what the SEC has proposed are good improvements to the law. For example: a company using the newly proposed Rule 147 would not have to be incorporated in theContinue reading “Rule 147: Comments to SEC Due Monday”