I've been reading through other questions here and most people refer the asker to scattrade or TDameritrade or places like that. I have my own start-up business that hasn't made any moeny yet because I haven't been able to get start-up funding. I am selling 12,000 shares at $12 a share. If i sell all those shares it will be enough to fund my start-up. Can I sell shares of my company on the afore mentioned websites such as Scottrade? Is that a viable option?
It is a C corporation in Idaho.
As the gentleman stated earlier – you have to go through the process of the SEC – which takes 12-18 months – before you can publicly sell shares on various exchanges.
You can sell privately – and there isn't any online solutions for that since to do so would be to sell or trade them publicly – breaking Federal statutes.
As for your pricing – I believe you will find it difficult to sell private shares of a not yet profiting company for $12 a share. I myself have a C Corp, but through Nevada, though I am in Kentucky. Much better tax situation as a Nevada C Corp, especially with the many subsidiaries I have.
We too are selling private shares, but at $1 per share. Even at that price, and we have profitable divisions, is hard to get in this tight economy.
Good luck in your endeavors.
(Formerly of Boise & Mountain Home)
scottrade is a good start probably.
References :
What type of corporation do you have? "C" or "S"?
You just can't sell shares of your private company to the public on an exchange like that. Those websites are only for "Listed shares". You have to go thru the SEC and pay big money to do that.
You can probably sell shares to individuals directly, but there may be limits to how many and it involves a lot of extra recordkeeping/accounting work
You have to check with a lawyer or CPA to see how you can do this.
References :
As the gentleman stated earlier – you have to go through the process of the SEC – which takes 12-18 months – before you can publicly sell shares on various exchanges.
You can sell privately – and there isn't any online solutions for that since to do so would be to sell or trade them publicly – breaking Federal statutes.
As for your pricing – I believe you will find it difficult to sell private shares of a not yet profiting company for $12 a share. I myself have a C Corp, but through Nevada, though I am in Kentucky. Much better tax situation as a Nevada C Corp, especially with the many subsidiaries I have.
We too are selling private shares, but at $1 per share. Even at that price, and we have profitable divisions, is hard to get in this tight economy.
Good luck in your endeavors.
(Formerly of Boise & Mountain Home)
References :
1) OTCBB.
2) Who is going to buy a share in your company for $12.00 USD when you can buy a share in Ford (The seventh largest company in the United States of America) for less than $10.00 USD?
References :
It might help if you bring in a Financial Solutions Partner (FSP) who has the needed contacts in the seed and angel capital arena. There are a large number of firms who specialize in this sector. You should seek firms, such as the one I work for, who hosts both an Angel Investment Group and also a Business Incubator who can assist with all of your early stage offering requirements and professional documentation.