{"id":414054,"date":"2024-12-19T17:22:05","date_gmt":"2024-12-19T17:22:05","guid":{"rendered":"https:\/\/seedlegals.com\/?p=414054"},"modified":"2024-12-19T17:22:05","modified_gmt":"2024-12-19T17:22:05","slug":"can-i-ask-for-investment-online-navigating-rule-504-506b-and-506c-as-a-founder","status":"publish","type":"post","link":"https:\/\/seedlegals.com\/us\/resources\/can-i-ask-for-investment-online-navigating-rule-504-506b-and-506c-as-a-founder\/","title":{"rendered":"Can I ask for investment online? Navigating Rule 504, 506(b) and 506(c) as a founder"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>When you\u2019re raising money for your company, the stock you&#8217;re offering are &#8216;securities&#8217; \u2013 they\u2019re financial assets giving investors a stake in your business. The Securities and Exchange Commission (SEC) regulates the sale of securities to protect investors. Normally, selling s<\/p>\n","protected":false},"author":169,"featured_media":414059,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[141],"tags":[],"event_tags":[],"class_list":["post-414054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-us"],"acf":{"blog_layout":"v2","v2":{"hero":{"image_background_color":"#E7F1FF","image_fit":"img--contain"},"adverts":[{"type":"selector","selected_advert":{"ID":412063,"post_author":"77","post_date":"2024-11-11 09:44:14","post_date_gmt":"2024-11-11 09:44:14","post_content":"","post_title":"US - Start free","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-start-free","to_ping":"","pinged":"","post_modified":"2024-11-13 16:18:26","post_modified_gmt":"2024-11-13 16:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/seedlegals.com\/?post_type=blog_advert&#038;p=412063","menu_order":0,"post_type":"blog_advert","post_mime_type":"","comment_count":"0","filter":"raw"},"custom_advert":{"advert_tracking_id":"","layout":"default","image":{"image":false,"link":""},"text":{"heading":"","content":"","button":null,"background_color":"#EEF4FF","text_color":"#000646"},"form":{"form":{"type":"none","hubspot_form":{"layout":"newsletter","hide_founderinvestor_toggle":false,"default_community":"founder","custom_form_id":"","gdpr_disclaimer":"By subscribing, you agree to receive information from SeedLegals. You can unsubscribe anytime. View our <a href=\"\/privacy-policy\/\" target=\"_blank\" rel=\"noopener noreferrer\">privacy policy<\/a>"},"custom":{"embed":""},"gtm_form_type":false,"gtm_form_location":false}},"cta_and_testimonials":{"heading":"","button":null,"bullet_points":false,"testimonials":false}}}],"related_sidebar_posts":false},"show_author_card":false,"revision_date":"","hero_image":414059,"has_custom_post_authors":true,"is_expert_reviewed":true,"post_content_width":"default","post_content":[{"acf_fc_layout":"text","text":"<p>When you\u2019re raising money for your company, the stock you&#8217;re offering are &#8216;securities&#8217; \u2013 they\u2019re financial assets giving investors a stake in your business. The Securities and Exchange Commission (SEC) regulates the sale of securities to protect investors. Normally, selling securities publicly requires a formal registration (which can be time-consuming and expensive) \u2013 and early stage companies don\u2019t want to go through it.<\/p>\n<p>That\u2019s why <a href=\"https:\/\/www.ecfr.gov\/current\/title-17\/chapter-II\/part-230#sg17.3.230_1498a.sg11\" target=\"_blank\" rel=\"noopener\">Regulation D<\/a> was introduced. It offers companies a way to raise money privately without needing to go through the full SEC registration process. Rule <a href=\"https:\/\/www.ecfr.gov\/current\/title-17\/chapter-II\/part-230\/subject-group-ECFR6e651a4c86c0174\/section-230.504\" target=\"_blank\" rel=\"noopener\">504<\/a>, <a href=\"https:\/\/www.ecfr.gov\/current\/title-17\/chapter-II\/part-230\/subject-group-ECFR6e651a4c86c0174\/section-230.506\" target=\"_blank\" rel=\"noopener\">506(b) and 506(c)<\/a> are three exemptions under Regulation D that let companies raise money without registration, but with conditions to still protect investors.<\/p>\n<p>So, as a founder raising money for your company, you\u2019ll probably need to choose between these exemptions under Rule 504, 506(b) and 506(c).<\/p>\n<p>In this article, we\u2019ll explain the differences between each of them, so you can make the right decision for your fundraise.<\/p>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"There are other exemptions you can use \u2013 Regulation A, Regulation CF and Regulation S (but these are less common). We've explained all in <a href=\"https:\/\/seedlegals.com\/us\/resources\/picking-the-right-sec-exemption-for-your-fundraise\/\" target=\u201d_blank\u201d>our complete breakdown of the SEC fundraising rules<\/a><br \/>\r\n","link":null},{"acf_fc_layout":"text","text":"<h2><strong>What is Rule 504?<\/strong><\/h2>\n<p>Rule 504 is an exemption you can use if you\u2019re raising up to $10 million within a 12-month period. If you\u2019re a smaller company that wants to raise money without a lot of stringent requirements, it\u2019s often a good choice. This exemption allows \u201cgeneral solicitation\u201d under certain conditions \u2013 meaning you can advertise your fundraise publicly.<\/p>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"<b>What counts as \u201cgeneral solicitation\u201d?<\/b> <br \/>\r\n<br \/>\r\nGeneral solicitation includes any effort to market your offering to the public, such as:<br \/>\r\n<ul><br \/>\r\n<li>Social media posts about your raise<\/li><br \/>\r\n<li>Advertisements in newspapers or online<\/li><br \/>\r\n<li>Email blasts to people you don't know personally<\/li><br \/>\r\n<\/ul><br \/>\r\nYou can read more on what\u2019s meant by \u201cgeneral solicitation\u201d at <a href=\"https:\/\/www.ecfr.gov\/current\/title-17\/part-230\/section-230.502#p-230.502(c)\/\" target=\u201d_blank\u201d>Rule 502(c) of Regulation D.<\/a>","link":null},{"acf_fc_layout":"text","text":"<p>Under Rule 504, your company would also need to comply with state securities laws (sometimes called &#8220;Blue Sky&#8221; laws).<\/p>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"<b>What are \u201cBlue Sky\u201d laws?<\/b><br \/>\r\n<br \/>\r\nThese are state-level laws that are designed to protect investors from overly risky financial opportunities. So, as a company that\u2019s raising, you\u2019ll have to provide some information about your fundraise to the regulators in each state where your investors are based. This is to make sure your investors have all the facts to make an informed decision. ","link":""},{"acf_fc_layout":"text","text":"<p>Each state will have their own requirements and deadlines, but a lawyer can make sure you\u2019re following the Blue Sky laws that apply. A firm like <a href=\"https:\/\/www.lumia.company\/\" target=\"_blank\" rel=\"noopener\">Lumia<\/a> can help you with this \u2013 they\u2019re experts in identifying and making the right filings for you.<\/p>\n<h3><strong>Who can invest in a 504 offering?<\/strong><\/h3>\n<p>Under Rule 504, you\u2019ll be able to raise money from both \u201caccredited\u201d and \u201cnon-accredited\u201d investors.<\/p>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"An accredited investor is a person (or entity) that either meets specific annual income or wealth thresholds, or holds relevant professional certifications. The full definition is in <a href=\"https:\/\/www.ecfr.gov\/current\/title-17\/chapter-II\/part-230\/subject-group-ECFR6e651a4c86c0174\/section-230.501\" target=\u201d_blank\u201d>Rule 501 of Regulation D.<\/a><br \/>\r\n<br \/>\r\nFor example, an individual is \u201caccredited\u201d if they satisfy any of these conditions:<br \/>\r\n<br \/>\r\nTheir net worth is over $1 million (excluding their primary residence)<br \/>\r\nTheir annual income is over $200,000 individually (or $300,000 with a spouse) for the past two years<br \/>\r\nThey hold certain financial licenses or professional credentials<br \/>\r\n<br \/>\r\nNon-accredited investors are everyone else \u2013 who don\u2019t meet these requirements.<br \/>\r\n<br \/>\r\n","link":null},{"acf_fc_layout":"text","text":"<h2><strong>What is Rule 506(b)?<\/strong><\/h2>\n<p>Rule 506(b) is the exemption that lets you raise money \u2018privately\u2019. You can use it to raise an unlimited amount of money without having to register with the SEC.<\/p>\n<p>But you can\u2019t publicly promote your fundraising efforts \u2013 as this would count as \u201cgeneral solicitation\u201d. So, if you\u2019re relying on this, you can pretty much only raise money from investors that you have pre-existing relationships with.<\/p>\n"},{"acf_fc_layout":"text","text":"<h3><strong>Who can invest in a 506(b) offering?<\/strong><\/h3>\n<p>Under 506(b), you can raise funds from an unlimited number of self-verified accredited investors. This means they can confirm their accreditation status, and you won\u2019t need to take any extra steps to verify this.<\/p>\n<p>With 506(b) you can also raise money from up to 35 non-accredited investors. But including non-accredited investors makes things much more complicated \u2013 they need to be given additional disclosures (like audited financial statements) for their protection.<\/p>\n<p>In reality, most companies fundraising through this route just stick to accredited investors to make things simpler.<\/p>\n"},{"acf_fc_layout":"text","text":"<h2><strong>What is Rule 506(c)?<\/strong><\/h2>\n<p>Like Rule 504, Rule 506(c) allows startups to publicly promote their fundraise, which can be useful if you don\u2019t already have relationships with experienced investors.<\/p>\n<h3><strong>Who can invest in a 506(c) offering?<\/strong><\/h3>\n<p>Unlike 504 and 506(b), Rule 506(c) only allows accredited investors to participate. However, the key difference is that under 506(c), the company must take \u201creasonable steps\u201d to verify that investors are accredited.<\/p>\n<p>This verification process can involve reviewing tax returns, bank statements, or their certifications. In reality, you would outsource this verification process to an external company. The process will mean your fundraise takes longer (you\u2019ll have to gather documents from all your investors) and cost more (you\u2019ll have to pay for the third-party verification company).<\/p>\n"},{"acf_fc_layout":"text","text":"<h2><strong>What are the key differences between 504, 506(b) and 506(c) raises?<\/strong><\/h2>\n<p>The key compliance difference between 504, 506(b) and 506(c) is how investor accreditation is verified. Under 504, you don\u2019t need to conduct any specific investor verification (as you can even accept non-accredited investors under this route). With 506(b), you can rely on investors\u2019 self-certification, but under 506(c), you must take \u201creasonable steps\u201d to verify their status.<\/p>\n<p>To meet the SEC\u2019s standards, you might need to:<\/p>\n<ul>\n<li>Obtain investors&#8217; tax returns or W-2 forms to verify income<\/li>\n<li>Review bank or brokerage statements to confirm net worth<\/li>\n<li>Get a written statement from a licensed professional (CPA, attorney, or investment adviser) certifying that the investor meets the accredited investor requirements<\/li>\n<\/ul>\n<p>Usually, an external company would handle this verification process for your raise.<\/p>\n"},{"acf_fc_layout":"text","text":"<h2><strong>Should you raise under 504, 506(b) or 506(c)?<\/strong><\/h2>\n<p>The decision between choosing Rule 504, 506(b) or 506(c) depends on your fundraising strategy and resources.<\/p>\n<p>You can use the flowchart below to help you pick the right option for you.<\/p>\n"},{"acf_fc_layout":"image","image":{"ID":414230,"id":414230,"title":"Choose The Right Option For Your Fundraise","filename":"Choose-the-right-option-for-your-fundraise.png","filesize":261955,"url":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise.png","link":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise.png","alt":"Choose The Right Option For Your Fundraise","author":"176","description":"Choose The Right Option For Your Fundraise","caption":"Choose The Right Option For Your Fundraise","name":"choose-the-right-option-for-your-fundraise","status":"inherit","uploaded_to":414054,"date":"2024-12-30 13:32:30","modified":"2024-12-30 13:32:31","menu_order":0,"mime_type":"image\/png","type":"image","subtype":"png","icon":"https:\/\/seedlegals.com\/wp-includes\/images\/media\/default.png","width":2400,"height":2298,"sizes":{"thumbnail":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-150x150.png","thumbnail-width":150,"thumbnail-height":150,"medium":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-300x287.png","medium-width":300,"medium-height":287,"medium_large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise.png","medium_large-width":768,"medium_large-height":735,"large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-1024x980.png","large-width":1024,"large-height":980,"_themosis_media":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-100x100.png","_themosis_media-width":100,"_themosis_media-height":100,"1536x1536":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-1536x1471.png","1536x1536-width":1536,"1536x1536-height":1471,"2048x2048":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-2048x1961.png","2048x2048-width":2048,"2048x2048-height":1961,"themosis":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-200x150.png","themosis-width":200,"themosis-height":150,"tog-small":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-300x287.png","tog-small-width":300,"tog-small-height":287,"tog-medium":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-600x575.png","tog-medium-width":600,"tog-medium-height":575,"tog-large":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-1000x958.png","tog-large-width":1000,"tog-large-height":958,"tog-huge":"https:\/\/seedlegals.com\/wp-content\/uploads\/2024\/12\/Choose-the-right-option-for-your-fundraise-1400x1341.png","tog-huge-width":1400,"tog-huge-height":1341}},"caption":"","width":"100","alignment":"left"},{"acf_fc_layout":"text","text":"<table style=\"height: 168px; width: 100%; border-collapse: collapse; border-style: solid; border-color: #00000;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Rule 504<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Rule 506(b)<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Rule 506(c)<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Investor limits<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Unlimited accredited and non-accredited investors<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Up to 35 non-accredited investors (and unlimited accredited investors)<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Accredited investors only<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Limit on amount raised<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Up to $10 million within a 12-month period<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Unlimited<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Unlimited<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>General solicitation to public<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Allowed if certain state conditions are met<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Not allowed<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Allowed<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Accreditation verification<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">No specific verification required<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Self-certification allowed<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">\u201cReasonable steps\u201d required<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Marketing<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Public marketing allowed if state conditions are met<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">No public marketing<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Public marketing allowed<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px; border-style: solid;\"><strong>Compliance costs\u00a0<\/strong><\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Varied (there are few federal requirements, but number of state law filings depend on specific circumstances)<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Lower (no formal verification)<\/td>\n<td style=\"width: 25%; height: 24px; border-style: solid;\">Higher (verification process required)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n"},{"acf_fc_layout":"text","text":"<h2><strong>Can you switch between 504, 506(b) and 506(c)?<\/strong><\/h2>\n<p>If you start your raise as a 506(b) offering (which isn\u2019t public), you have the option to switch to 506(c) and begin publicly advertising.<\/p>\n<p>But, if you begin as a 506(c) offering and share details of your fundraise publicly, you can\u2019t switch back to 506(b).<\/p>\n<p>It\u2019s difficult to switch from either of the 506 options to Rule 504 \u2013 this is because the $10 million cap and the state-specific filing requirements make it hard to comply with the rules once you\u2019ve started down another path.<\/p>\n"},{"acf_fc_layout":"text","text":"<h2><strong>How do you make a Regulation D filing?<\/strong><\/h2>\n<p>One of the main advantages of Regulation D is that it\u2019s fairly simple to file. Here\u2019s what to know about timing and paperwork:<\/p>\n<ol>\n<li><strong>Register for an SEC account:<\/strong> You\u2019ll need to set up an account with the <a href=\"https:\/\/www.sec.gov\/search-filings\" target=\"_blank\" rel=\"noopener\">SEC\u2019s EDGAR system<\/a>. This process can take some time, so it\u2019s best to do this before closing your financing round.<\/li>\n<li><strong>File Form D:<\/strong> Complete and submit <a href=\"https:\/\/www.sec.gov\/about\/forms\/formd.pdf\" target=\"_blank\" rel=\"noopener\">Form D<\/a>, which covers essential information about the investment round. This should be filed within 15 days of the company receiving funds. There\u2019s no filing fee associated with Form D.<\/li>\n<li><strong>Blue Sky filings:<\/strong> You may also need to file state-level \u201cBlue Sky\u201d exemptions, depending on the investor&#8217;s residence. You\u2019ll typically pay between $300 and $1,000 per state in filing fees. This should also be filed within 15 days of the company receiving funds.<\/li>\n<\/ol>\n"},{"acf_fc_layout":"content_highlight","highlight_type":"tip","background_colour":"blue","show_icon":true,"content":"You can complete Form D within 15 days of you receiving the first funds from your investor. This means you don\u2019t have to spend time and money on legal filings until after you\u2019ve secured money.","link":null},{"acf_fc_layout":"text","text":"<p>You can file Form D on your own \u2013 it\u2019s not extremely hard. But it\u2019s best to get the help of a lawyer, like <a href=\"https:\/\/www.lumia.company\/\" target=\"_blank\" rel=\"noopener\">Lumia<\/a>, to make sure you get all the filings right \u2013 especially if you have Blue Sky filings to complete too. Getting the submissions wrong could lead to penalties or delays to your fundraising.<\/p>\n<h2 style=\"text-align: center;\"><strong>Got any questions? We\u2019ll get them answered<\/strong><\/h2>\n<p style=\"text-align: left;\"><a href=\"https:\/\/seedlegals.com\/us\/talk-to-us\/\" target=\"_blank\" rel=\"noopener\">Book a free call with our team<\/a> to find out how we can help with your fundraise.<\/p>\n<p>Want to try SeedLegals for free first? <a href=\"https:\/\/app.seedlegals.com\/signup\" target=\"_blank\" rel=\"noopener\">Start your 7-day free trial<\/a>.<\/p>\n"},{"acf_fc_layout":"form","layout":"custom","heading":"Get answers fast, for free","content":"Bring all your questions - we\u2019ve got the answers!\r\nWe\u2019ll match you with the right specialist.","custom":{"image":false,"button_text":"Get Started","form":{"type":"hubspot","hubspot_form":{"layout":"default","hide_founderinvestor_toggle":false,"default_community":"founder","custom_form_id":"21723609-6f1b-45c0-9691-77d462dc3bed","gdpr_disclaimer":"By subscribing, you agree to receive information from SeedLegals. You can unsubscribe anytime. View our <a href=\"\/us\/privacy-policy\/\" target=\"_blank\" rel=\"noopener noreferrer\">privacy policy<\/a>"},"custom":{"embed":""},"gtm_form_type":"default","gtm_form_location":"default"}},"add_shadow":false}],"has_sources":false,"related_posts":false,"custom_post_authors":{"authors":[{"author":{"ID":169,"user_firstname":"Idin","user_lastname":"Sabahipour","nickname":"Idin Sabahipour","user_nicename":"idin-sabahipour","display_name":"Idin Sabahipour","user_email":"idin@seedlegals.com","user_url":"","user_registered":"2024-08-29 09:55:07","user_description":"","user_avatar":"<img alt='' src='https:\/\/secure.gravatar.com\/avatar\/45fe33a1de890806e7ec6d8ac105288d6228c292c65cf28e96818af3496fd572?s=96&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/45fe33a1de890806e7ec6d8ac105288d6228c292c65cf28e96818af3496fd572?s=192&#038;d=mm&#038;r=g 2x' class='avatar avatar-96 photo' height='96' width='96' loading='lazy' decoding='async'\/>"},"role":"Writer"},{"author":{"ID":172,"user_firstname":"Drew","user_lastname":"Macklin","nickname":"drewmacklin","user_nicename":"drewmacklin","display_name":"Drew Macklin","user_email":"drewmacklin@seedlegals.com","user_url":"","user_registered":"2024-11-08 15:39:57","user_description":"","user_avatar":"<img alt='' src='https:\/\/secure.gravatar.com\/avatar\/8bc81ff5103857f65325d50bbf7a4019afbc9a7a1d4020c1c5993bb03035bccb?s=96&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/8bc81ff5103857f65325d50bbf7a4019afbc9a7a1d4020c1c5993bb03035bccb?s=192&#038;d=mm&#038;r=g 2x' class='avatar avatar-96 photo' height='96' width='96' loading='lazy' decoding='async'\/>"},"role":"Legal review"}]},"expert_reviewed":{"heading":"Expert reviewed","tooltip_message":"This article has been fact-checked by a SeedLegals subject matter expert.<br><br><a href=\"https:\/\/seedlegals.com\/authors-and-experts\/\" target=\"_blank\">Meet our experts<\/a> and learn more about our review process and quality assurance in our <a href=\"https:\/\/seedlegals.com\/editorial-policy\/\" target=\"_blank\">editorial policy<\/a>."}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Finding investors online: Navigating Rule 504, 506(b) &amp; 506(c)<\/title>\n<meta name=\"description\" content=\"Learn the key differences between raising funds under Rule 504, 506(b) and 506(c). Understand investor limits, marketing, and compliance requirements for your next fundraise.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seedlegals.com\/us\/resources\/can-i-ask-for-investment-online-navigating-rule-504-506b-and-506c-as-a-founder\/\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finding investors online: Navigating Rule 504, 506(b) &amp; 506(c)\" \/>\n<meta property=\"og:description\" content=\"Learn the key differences between raising funds under Rule 504, 506(b) and 506(c). 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