Montana House Bill 481 becomes law on July 1 and will change the way businesses can raise money to operate. Montana crowdfunding will level the playing field between the high net worth individuals and the rest of us. It allows a Montana business looking to raise capital a chance to realize their dreams.
Traditionally, a business who needs to raise capital must follow a formal procedure of registering the investment opportunity as a security or must fit within the restrictive confines of an exemption from registration. This structure ensures that Montana residents are not presented with fraudulent investment opportunities.
The current bill passed 19 to 0 in committee, and 100 to 0 on the floor, so it’s in the second half of its process. There do not appear to be any major roadblocks although anything can happen, as with all new legislation. Montana crowdfunding supporters hope Governor Steve Bullock will sign the bill into law once it clears the legislature.
Beginning in July, if you have a business registered in Montana, you will be able to raise up to $1 million in capita, exempt from having to go through the formal process of traditional securities registration. There are caveats: No investor can invest more than $10,000 and all investors must be residing in Montana.
Review the current Montana Crowdfunding Exemption:
Here are just a few features for Montana crowdfunding included in the CrowdForce platform software:
• State residency self-verification
• Driver’s license upload for verification
• Setting funding limits for non-accredited investors
• Allowing accredited investor participation
• Complete and simple document signing and management
• Integrated ACH payments
• Plug in your state escrow account
• Plugin in your broker services for accredited investments
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