Rule 506(b) PPMs

KEY FEATURES OF REGULATION D, RULE 506(b)

  • Companies can raise an unlimited amount of money and can sell securities to an unlimited number of accredited investors; however, securities may not be sold to more than 35 non-accredited investors
  • No general solicitation or advertising to market the securities is permitted;
  • If non-accredited investors are participating in the offering, the issuer must give any non-accredited investors disclosure documents that generally contain the same type of information as provided in Regulation A offerings;
  • Purchasers “restricted securities;
  • The issuer must file a Form D within 15 days after the first sale of securities in the offering;
  • Rule 506(b) offerings are subject to bad actor” disqualification provisions; and,
  • Issuers must comply with state security laws and regulations in the states within which securities are offered and sold.
Corporate PPMs
PPMs for LLC

Rule 506(b) PPMs For LLCs

  • Membership Units