Legal Question in Business Law in New Jersey

Re: Prospectus

Frequently not, but it depends on what you intend by "raise private funds." Any time there is an offering, it raises the question of whether the business or its owners are selling interests in the business as a means of making money for themselves or others. There is not much real distinction between selling a piece of the business to a sophisticated investor and offering it to the public. Some offerings are clearly public offerings and invoke the securities regulations. Private offerings are more subtle and should be looked at on a case-by-case basis to ensure that nothing is being overlooked. The fact that there is a question in your mind is an indication that you should at least have a lawyer review your plans.

See also: http://info.corbettlaw.net/lawguru.htm

Re: Prospectus

You are not in northern NJ, so I can not assist you. I am just trying to save you a lot of trouble.

I am telling you this because if you violate the law, you may go to jail for securities law violations.

PLEASE FIND AN ATTORNEY NEAR YOU WHO KNOWS SECURITIES AND BUSINESS LAW. GET SOME LEGAL ADVICE BEFORE YOU TAKE ANY MONEY AT ALL FROM ANY INVESTORS.

I have sued, successfully, men who started businesses and took money from investors and sold stock and ownership interests, all in violation of Federal and New Jersey state law. They also faced criminal charges.

Go get a lawyer. Please.

Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.