This post by Bill Sims
Nevada provides many tools to small business – from incentives for business expansion to self-insurance plans to assist in risk management. Another tool Nevada corporations have in their business arsenal is the publicly registered offering of securities.
Raising capital through a public offering can help with an expansion or the launch of a new business. In Nevada, there are three ways to accomplish this: registration by filing, registration in coordination with the U.S. Securities and Exchange Commission (SEC); and an intrastate registration by qualification.
The “registration by qualification” process is business friendly. This is a cost-effective alternative to a national IPO. It takes only a couple of months to process and you can theoretically raise an unlimited amount of capital. The benefit of this process is that as properly qualified officer or director of the company, you can approach investors – anyone living in Nevada – through telephone calls, direct mail, seminars, and advertising.
As with any capital mechanism, a business owner needs to determine the risks and costs associated with the venture. For a variety of reasons, the securities markets provide an excellent source of capital for small business. But accessing that capital presents small and large business alike the responsibility of compliance with applicable securities laws. Understanding those laws is the first step toward raising capital, and the Nevada Secretary of State, Securities Division is committed to helping legitimate businesses, after they have consulted with their won attorney and accountant, chart an appropriate course in gaining assess to public capital.
The content of this post was provided in its entirety by the Nevada Commission on Economic Development and is used by permission.