Cohousing-L Mailing List: re: securities regulations

[Daniel Nachbar (nachbar]

i'm no lawyer but . . .
I don't there is any problem setting up a corporation to do the development.
We did it.  You don't need to register.  The applicable rule is the
SEC Regulation D.  It specifically exempts corporations that raise less
than $100,000 through from pretty much any regulatory scrutiny.  You can
have up to 35 stockholders without any substantial problems.  All states
have similar rules, but stick pretty close to the SEC's lead.

But $100,000 isn't enough you say? Well, for our corporation, we sold
shares for $1 each. The rest of the cash was a deposit (Make sure that you
draft and sign purchase and sale agreements so that it is absolutely clear
that the extra money is not part of the purchase of corporate shares.)
You also have the option of borrowing money (on notes) from the buyers.

More details available upon request.
Dan Nachbar
nachbar [at] world.std.com