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Investors Needed for Chicago Entertainment Entity, Welcome
We love Chicago. Would like to read your Business Plan
Thanks, LUCKIEST at " email@example.com "
I am not an attorney and this is not legal advice in whole or in part, but from what I understand you could easily be violating a number of federal and state securities laws unless you properly register whatever securities you are offering. You should make sure you consult an attorney competent in securities law.
I believe that if the securities are not registered and you accept money from out of state investors or have more than a certain number of non accredited investors, that you are setting yourself up for BIG legal issues.
To answer Dublincpa, this was one of the first things we looked into, as it is just good business as well as legally necessary to document where your funds are coming from. When starting a venture such as this, the first line of fire is to start with fundraisers and donations. Securing investors is much different in regards to registration, and it's a good thing to bring up, so I would like to for anyone who's reading. After the situation with Madoff, many securities laws are changing to protect investors. Most states do require the investor actually qualify for investor status, meaning they earn over $200K per year. There are also levels of investors regarding what they are federally allowed to invest in increments based on their annual salary or if a company their annual revenue. So anyone looking for investors is free to pitch their business plans, but must be very careful when signing them on, as they must be able to offer a feasible amount for their stature and be registered on the company's behalf. Something that might be helpful to the beginning entrepreneur would be a site such as this, combined with legal council, and the specific state laws: http://www.tannedfeet.com/registering_securities.htm
If you also need some financing, there is free grant money available -- see businessformationgroup.com/grants
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We are a startup called Nervous System Entertainment. We consist of a publishing company, a custom art company, a cheap alternative housewares company, a movie company, a radio station, and a venue. We are currently in search of investors to help us fund the largest cast of characters for a horror film ever made. We are looking for small sums from several investors with a rate of return based on all other products we sell. Our required distributions are low, as we have done most of this film without a budget, and are looking mostly for marketing and to garner a distribution deal once we hit the festival circuit in 2010. Please contact me if you are interested and would like to see our business plan: firstname.lastname@example.org.