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Crowdfunding a non-incorporated startup

question Crowdfunding
Is it legal/possible to crowdfund a startup which is not incorporated ? Does JOBS act allow that ?
If yes, where can I read about that law ? Is it in the JOBS act itself ?

thank you.

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Answers

  • Chris Rogers Chris Rogers May 30, 2012 04:52 pm GMT

    Raising money through crowdfunding in exchange for a security (e.g., stock, member interest, debt, etc.) is not yet permitted until the SEC issues revised rules. But assuming the crowdfunding exemption was in effect, there 's no restriction on raising money for an unincorporated business - but it may be unwise. You would create a true partnership under the law, which could be a much stickier situation than having simply formed a corporation or llc in the first place.

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