is it legal to solicit investors for your company without a license?

Answer 1

Yes and no. There are rules to a private offering that must be followed but they don't necessarily require that the seller be a licensed broker.

It is also possible to get friends and family to invest in your small business without that requirement. If you were going to do what is called an Angel financing (this would be looking for outside investors and selling them shares of stock in your private corporation), you will have to use a firm that can follow the regulations.

There are strict limits on who you can solicit for an angel financing. They need to meet income and net worth minimums. You have to have a prospectus that details both the potential and the risks of the venture. You cannot use descriptive statements that sound like advertising like "amazing potential" or promise any specific rates of gain.

Your best bet is to talk to a lawyer and find out what options exist for your business. Otherwise you could end up in a heap of trouble.

Answer 2

Lori is correct. You should talk to a lawyer. Yes it is legal but there are restrictions on you, restrictions on your company, restriction on the offering and restrictions on the investors that you solicit.

If you present to Angel investors without a complete package of information, you will look foolish and get nowhere.

Answer 3

Yes it is legal, however it may show good faith to the investors if you take the step to get your business license

Answer 4

so some distance as i comprehend, the respond isn't any. even however, in case you had a company, it is going to registered as a 501(c)(3) non-income corporation with the Fed (IRS). however, i think you ought to act on the behalf of those companies with their convey/direct consent, and become conscious of your self as such! you won't be able to be an middleman. look at Salvation military ringing bells or people become conscious of themselves as from massive Brother/massive Sister...