Can a Private Company have multiple classes of stock?

Question

I want to know if a person starts a PRIVATE CORPORATION and he needs additional financing can he create multiple classes of stock to retain control of the company with lets say the (Super Stock) while allowing individual investors to buy the (Low Power Stock). I dont want the company to go public but i also need the financing. Can i make it work like this.

Answer 1

Yes, a company is allowed to have multiple classes of privately-traded stock, and many do.

Answer 2

Regulation D Series (Private Placement Memorandum PPM)
http://www.investopedia.com/terms/r/regulationd.asp
http://en.wikipedia.org/wiki/Private_placement
http://www.jbv.com/lessons/lesson24.htm
Through private offerings, entrepreneurs can often raise significant amounts of capital by selling only 10-35% of stock in their venture to accredited private investors. They retain complete control of the company and control the use of the funds raised.

Answer 3

If you sell stock, your company is public by definition. You solution might be to sell some percentage less than 50% of your company in the form of stock.

Answer 4

Yes, but you have to watch the trading laws so you don't end up trading the same stock to different investors. that will get you in jail