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Raising money without breaking "Blue Sky" laws

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ihot

Member
What is the name of your state (only U.S. law)? CAlifornia

I'm trying to raise money for a California LLC; they will pay me a small commission for selling their shares.
I heard that, if I write to friends and invite them to invest in a California LLC, I will not be contravening “Blue Sky” laws.

I am trying to contact the CEO of another Bermuda based corporation to sell shares. I not personally know this
CEO, although I used to work there and attended his meetings.
I contacted his secretary and she seems fine with my emailing a short write up to her about developing a WIN-WIN partnership between the CEO's corporation and that LLC. I’m wondering if I will be contravening “Blue Sky” laws if I send him an email asking him to buy shares from this LLC. I do not work for this LLC, and they hope to go public someday.

Thanks in advance
 
Last edited:


OHRoadwarrior

Senior Member
I believe they call that selling/brokering securities. Here is a link for you to obtain your license.

http://www.corp.ca.gov/
 

ihot

Member
I'm only getting a finder's fee, not commissions

I believe they call that selling/brokering securities. Here is a link for you to obtain your license.

http://www.corp.ca.gov/
Thanks for that info.
I'm sorry, I wrote it wrong - I'm only getting a finder's fee, not commissions. Will that make a difference?

Thanks again.
 

FlyingRon

Senior Member
Thanks for that info.
I'm sorry, I wrote it wrong - I'm only getting a finder's fee, not commissions. Will that make a difference?

Thanks again.
You can weasel all you want, but if it's contingent on the sale, it's a commission.
But even if it is, if you engage in the business of facilitating the sale of securities or other investments, no matter HOW you are compensated, you need a license.
 

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