Michael Gilman

State Bar of New York

Member

Current

Q. Can I do royalties crowdfunding (profit sharing) for only a single property inside the company (LLC)?

July 6, 2021

A: Selling royalties to passive investors takes you into the realm of securities regulation, and this would have to be a registered offering or have an exemption from registration. For crowd funding, most offerings will utilize 506(c) which allows general solicitation but requires investors to be accredited. Please don't hesitate to discuss further.

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