Federal Exemptions from Securities Laws

Federal Exemptions from Securities Laws

In most situations involving one person, a husband and wife, or a few partners running a business, where all parties are active in the enterprise, securities laws do not apply to the issuance of stock to themselves. These are the simple corporations that are the subject of this guide. As a practical matter, if your father or aunt are among a small group of investors who want to buy some stock in your business, your sale of stock most likely falls into one of the exemptions from securities laws.

However, you may wish to obtain money from additional investors to enable your business to grow. This can be done in many circumstances, as long as you follow the rules carefully. In some cases, you do not have to file anything with the SEC, but in others, you must file a notice.