Legal Question in Investment Law in New Hampshire

Donations to a ''for profit'' company (LLC)

I am starting a ''for profit'' business (LLC) and looking to raise capital. I want to solicit donations through the internet and other forms of media. In return I am going to give a life time membership, to the service I am creating, for a discount. Is this legal and what concerns should I have.


Asked on 1/27/03, 6:26 pm

1 Answer from Attorneys
Michael Paradise Law Offices of Michael S. Paradise

Re: Donations to a ''for profit'' company (LLC)

Be extremely careful. Your query says you want to "raise capital". Whether you call it shares or a "lifetime membership", the regulators may construe your solicitation as a sale of a "security", governed by Federal and State securities laws.

Before making any general solicitation, you should consult a qualified securities attorney.

This answer does not create an attorney/client relationship and does not constitute legal advice. It is for general informational purposes only.

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Answered on 1/27/03, 6:58 pm


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