If I issue unsecured convertible promissory notes to investors to fund my business, what are my regulatory requirements? I would also like use your services to create the notes. Thanks.
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Bill HenryFounding Partner 18 years of experience
From your description, this activity falls under securities law as you're issuing a type of security. Thus, you would need to comply with with securities law and Securities and Exchange Commission (SEC) regulations. You will need to register the securities with the SEC. For smaller offerings you will need to rely on an exemption from registration, such as Rule 506(b) or Rule 506(c) of Regulation D.
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