Inc. staff

Is An Intrastate Offering Right For You?

Intrastate offerings may be cheaper and easier than traditional IPOs, but companies must meet the following criteria to qualify for the SEC exemption.

 
  • Location
    Your company must be incorporated in the state where you make the offering.
  • Residency
    Investors must reside in the state where your company is based. They can trade to out-of-staters only after nine months.
  • Revenue
    More than half of your company's revenue must be derived from operations within your state.
  • Investor Pool
    You must have fewer than 500 security holders of record to avoid SEC filing requirements.