| You don't have to be rich to start your own | | | | "We had good growth, positive cash flow, visibility |
| company. In fact, about 17% of all businesses now | | | | and networking opportunities that translated into the |
| worth more than $1 million were launched with less | | | | kind of sales we'd never have gotten if we hadn't |
| than $5,000, according to Wachovia (NYSE: WB), | | | | gone public," he said. |
| America's fourth largest bank by assets. | | | | "People who invested with me had a chance to make |
| Still, for your company to survive and grow, you | | | | money - doubling and tripling their investments within |
| need capital. Your savings, credit cards, loans and | | | | a relatively short period of time," he added. "As for |
| investments from family and friends can take you | | | | me, personally, it was a wealth builder - a good, |
| only so far. | | | | wealth-building mechanism that also benefited my |
| But in the lingering wake of the dot-com debacle, it's | | | | family and children." |
| a particularly tough market out there. "Today, even | | | | And the Downside of Going Public?o Need to share |
| veteran CEOs are having a hard time raising funds, | | | | profits. If your firm is a highly successful venture, |
| and what money they do raise comes with a lot of | | | | future success (and profit) has to be shared with |
| strings attached," said Jill Andresky Fraser, finance | | | | outsiders. After the typical traditional IPO, for |
| editor of Inc magazine. | | | | example, about 40% of the company remains with |
| Venture capitalists have, for the most part, vacated | | | | insiders, but this can vary from 1% to 88%, with |
| the $500,000 to $5 million-investment range, leaving a | | | | 20% to 60% falling within the "comfortably normal" |
| huge gap for SMEs that seek an infusion of capital at | | | | range. (A Registration-by-Qualification, however, |
| those levels. | | | | virtually eliminates this drawback.)o Loss of |
| SBA study numbers indicate that more than half | | | | confidentiality. A major reason firms resist going public |
| (56,000) of the 100,000 small businesses requiring | | | | is the loss of confidentiality in company operations |
| equity capital to execute their business plans are | | | | and policies. For instance, some businesses could be |
| unable to raise what they need through traditional | | | | destroyed if they were to disclose their technologies |
| approaches and private sources. And a full-scale, | | | | or profitability to competitors. |
| national-level, Independent Public Offering (IPO) is too | | | | Public companies must also disclose names and |
| lengthy and costly for most small businesses, | | | | company addresses of officers and directors, along |
| assuming they can even meet all the requirements. | | | | with considerable other data about the corporation |
| So, what's the answer? | | | | and its operations.o Reporting and fiduciary |
| One answer - an increasingly popular, but | | | | responsibilities. Public companies must continuously file |
| less-well-known strategy for financing SME growth - | | | | reports with the SEC. They must comply with certain |
| is presented in this white paper: | | | | state securities laws ("blue sky" laws), plus guidelines |
| Forming a Nevada corporation and, with no minimum | | | | of FINRA (Financial Industry Regulatory Authority, |
| investment required, bringing your corporation public, | | | | formerly known as NASD). These disclosures cost |
| raising up to $1 million initially (later you have the | | | | money and provide information to competitors.o |
| prospect of raising more) by means of a | | | | Potential Loss of control. Outsiders are often in a |
| Registration-by-Qualification Offering in the state of | | | | position to take control of corporate management |
| Nevada, in which you sell unrestricted shares that can | | | | and might even fire the entrepreneur/company |
| generally be sold to any Nevada resident. | | | | founder. While there are effective anti-takeover |
| Why Incorporate in Nevada? | | | | measures (especially as allowed in Nevada), investors |
| Some of the tax and operating benefits mentioned in | | | | are unwilling to pay a high price for a company in |
| this section may depend upon provisions of your | | | | which poor management cannot be replaced. (Again, |
| corporate bylaws or require you to live in and/or | | | | with the Nevada IPO Alternative for SMEs, there |
| maintain a business office in Nevada. So, it is best to | | | | need be no loss of control.)o IPO expenses. An initial |
| check with your accountant and legal counsel to | | | | public offering is a costly undertaking. A typical firm |
| determine which of the many tax and other benefits | | | | may spend 15% to 25% of the money raised on |
| mentioned in this section apply specifically to you, and | | | | direct expenses. Even more resources are spent |
| to what extent. | | | | indirectly in terms of, for example, management time |
| That said, however, Nevada is widely acknowledged | | | | and disruption of business. |
| to be the corporate capital of the United States | | | | With a successful capital campaign, these expenses |
| because of its well-established reputation for | | | | are paid out of new capital received. However, if |
| business-friendly laws: no corporate income tax - | | | | your campaign goals are not met, you may not raise |
| even on Nevada corporations that do not conduct | | | | enough capital to cover the costs of doing the IPO. |
| business in Nevada - no taxes on corporate shares, | | | | In that case, the shortfall comes out of your |
| and no franchise or personal income tax, either. | | | | pocket.o Increased liability. The company, its |
| Nevada assesses no inheritance or gift tax, no | | | | management and other participants may be subject |
| admissions tax, no unitary tax, and virtually no estate | | | | to liability for false or misleading statements and |
| tax. | | | | omissions in the registration documents or in the |
| Its regulations offer flexibility to directors, which need | | | | reports filed by the company after it becomes public. |
| not be stockholders, in managing corporate affairs; | | | | In addition, management may be subject to lawsuits |
| and they permit management to establish strong | | | | by the stockholders for breaches of fiduciary duty, |
| protection from hostile takeovers. | | | | self-dealing and other claims, whether true or not. |
| Unlike other states, Nevada permits a corporation's | | | | However, here, too, Nevada does a good job of |
| articles of incorporation to vest authority to adopt, | | | | keeping these vulnerabilities to a minimum.o The |
| amend or repeal bylaws exclusively with the board of | | | | challenge. Selling your own stock to family, friends |
| directors, thus denying shareholders the ability to | | | | and business associates is a challenge. You will need a |
| change the bylaws. | | | | number of independent investors willing to purchase |
| Nevada has nominal annual business fees, competitive | | | | your shares and a market maker (see below) willing |
| sales and property tax rates, minimal reporting and | | | | to accept your stock. |
| disclosure requirements, minimal requirements for | | | | Why Should I Consider the Nevada IPO Alternative |
| capital, a minimal employer payroll tax rate - 0.7% of | | | | for SMEs? |
| gross wages, with deductions for employer-paid | | | | The Nevada IPO Alternative for SMEs extends the |
| health insurance - and no information-sharing | | | | upside of going public and minimizes - in some cases |
| agreement with the I.R.S. | | | | negates - the downside. |
| Nevada, unlike many other states, allows one-person | | | | It allows your company to approach prospective |
| corporations. | | | | investors (including customers) by means of:o |
| Business litigation runs on a faster, more efficient | | | | Cold-callingo Newspaper advertisemento Direct mailo |
| track than in other states because Nevada maintains | | | | Radioo Internet radio/podcastingo Seminars |
| a court system for business. Moreover, officers and | | | | Although most states allow state-registered |
| directors of Nevada corporations gain lawsuit | | | | offerings, they impose so many restrictions that small |
| protection because they can be protected from | | | | businesses find the process impractical to pursue. |
| personal liability for lawful acts of the corporation. | | | | Nevada, however, has a straightforward process |
| Nevada corporations may purchase, hold, sell or | | | | known as "registration by qualification" that is quite |
| transfer shares of their own stock, and may issue | | | | friendly to business, especially small business. |
| stock for capital, services, personal property, or real | | | | Some of the most important features of a |
| estate, including leases and options. The directors | | | | registration by qualification in Nevada are:o You can |
| may determine the value of any of these | | | | sell securities to an unlimited number of both |
| transactions, and their decision is final. | | | | accredited and unaccredited investors, so long as |
| The state's package of economic development | | | | purchasers are either Nevada residents or certain |
| incentive programs includes:o Sales and Use Tax | | | | qualified visitors from out of state.o You can use |
| Deferral Programo Sales and Use Tax Abatemento | | | | general solicitation or advertising to market the |
| Modified Business Tax Abatemento Property Tax | | | | securities, but you may only distribute prospectuses |
| Abatemento Train Employees Now (TEN)o | | | | within Nevada (subject to possible additional |
| Renewable Energy Abatements | | | | restrictions).o You can use general solicitation or |
| As a result, many major corporations are chartered in | | | | advertising to market the securities, but you may |
| Nevada - particularly corporations whose | | | | only distribute prospectuses within Nevada (subject |
| headquarters are located in California and other | | | | to possible additional restrictions). Holding a seminar to |
| western states. | | | | sell your securities is allowed. And you may also hold |
| According to statistics from the Nevada Secretary of | | | | the seminar at one of the hotels and sell the |
| State, 300,000 companies are currently incorporated | | | | securities to visitors who did not come to Nevada to |
| in Nevada, with new Nevada corporations showing a | | | | purchase securities. This is a wide-open possibility for |
| consistent uptrend over the past three years: | | | | stock distribution.o When the offering has been |
| - all evidence of Nevada's growing popularity as a | | | | closed and the securities (normally common stock) |
| home for American corporations. | | | | have been issued and rest in the hands of an |
| What's the Upside of Going Public?o Raise capital. | | | | investor, they are considered to be "free trading."o |
| Going public is often the best way for a successful | | | | Free-trading stock status allows the company to |
| business to raise capital. If your cash flow isn't | | | | apply for quotation on a medium such as the Over |
| generating the capital you need to grow your | | | | the Counter Bulletin Board (OTCBB - see later |
| business, taking your company public allows others | | | | explanation of this venue).o You may hire what is |
| who believe in your potential to demonstrate their | | | | called a Series 63 agent and pay him a commission to |
| support of your goals by tapping their wallets. | | | | raise up to $1 million within the state,.o You may also |
| A public offering of your company's stock can result | | | | raise the funds on your own by marketing the stock |
| in raising significantly more capital than a private | | | | to your database or the general public.o The |
| placement because it may allow the offer and sale of | | | | possibility of becoming public in half the time of any |
| securities to a broader group of potential investors. | | | | other type of self-distribution program with stock is |
| If a company needs to raise more capital later, it can | | | | increased by the use of Nevada's RBQ process, |
| always sell stock (equity) or issue bonds (debt | | | | allowing for the distribution of free-trading stock and |
| securities). And, subject to the requirements of | | | | filing of Form 10 instead of other registration |
| individual lenders, publicly traded stock can be used as | | | | statements.o This also allows you to file a 15c211 |
| collateral to secure loans. | | | | directly with the OTCBB Compliance Unit, and bypass |
| Going public in Nevada requires that only a reasonable | | | | corporate finance requirements. |
| amount of the company's ownership be put into play | | | | How Does the Nevada IPO Alternative for SMEs |
| for public investors. | | | | Work? |
| Compare this to the ownership stake venture | | | | Here are the basic steps involved in a Registration by |
| capitalists typically require for their investments - | | | | Qualification and getting to traded status, but it's best |
| sometimes upwards of 90%, not to mention their | | | | to commission qualified consultants or advisors to |
| rigorous management controls and required | | | | help you through the process. |
| representation on the board of directors - and you | | | | 1. Form a Nevada corporation. Registration by |
| see how substantial ownership can be preserved via | | | | Qualification is only available to corporations that can |
| the Nevada state-registered offering process.o | | | | issue stock - not to partnerships nor LLCs. The |
| Create liquidity. To sell the stock of a private | | | | process is also not available to entities incorporated |
| company, a stockholder must find another person | | | | under Subchapter S ("S-Corps"), but only to those |
| interested in owning the shares. This is especially | | | | incorporated under Subchapter C ("C-Corps"). It is, |
| difficult for people who hold minority stock positions. | | | | however, available to one-person corporations. |
| However, by going public, a company creates a | | | | Offerings are subject to the laws of not only the |
| market for its stock in which buyers and sellers | | | | state in which the offering is made, but also the |
| participate and stock can be freely bought and sold. | | | | state in which the company is incorporated. So, while |
| Generally speaking, stock in a public company is much | | | | firms incorporated in other states can also do a |
| more liquid than stock in a private enterprise. | | | | Registration-by-Qualification in Nevada, being |
| Liquidity is important and created primarily for the | | | | incorporated in Nevada makes the process |
| benefit of owners and investors, since they may be | | | | cost-effective and business-friendly because of its |
| able to buy or sell the stock more readily once the | | | | corporate laws. |
| public offering is completed. | | | | For instance, most states do not permit two of the |
| Liquidity can also elevate the value of the | | | | most important advantages of state-registered |
| corporation. Although a stock's liquidity depends on a | | | | offerings:o Allowing general advertising and |
| variety of factors, including:o Registration rightso | | | | solicitation.o Allowing disclosure to be the basis for |
| Lock-up agreement restrictions**o Holding periods | | | | clearing the state-registered offering. |
| ** Lock-up agreements prohibit company insiders - | | | | But Nevada does. In fact, Nevada is one of the few |
| including employees, their friends and family, and | | | | states that allow companies to take advantage of |
| venture capitalists - from selling their shares for a set | | | | these benefits without imposing restrictions that |
| period of time without the underwriter's permission. | | | | would make the placement impractical. However, all |
| While the underwriter can choose to end a lock-up | | | | registered offerings in the state are subject to |
| period early - whether because of market conditions, | | | | clearance by the Securities Division of Nevada. |
| the performance of the offering, or other factors - | | | | 2. Prepare prospectus and audit. The prospectus is a |
| lock-ups generally last for 180 days after the | | | | complete overview of the company, its business |
| offering's registration statement becomes effective. | | | | model, competitors, management, history, and risks, |
| A public company has a greater opportunity to sell | | | | along with a summary of the offering and |
| stock to investors than a private one.o Improve | | | | capitalization of the company following the issuance |
| compensation. Public companies can use their stock | | | | of shares. |
| and stock option plans to attract and retain talented | | | | Audited financial statements, together with a legal |
| employees and key personnel - a reward which is | | | | opinion, must also be submitted to the state. During |
| more desirable if the stock has a public market. | | | | its review process, the state will often provide |
| A stock plan for all employees not only demonstrates | | | | comment letters, which ask questions or point out |
| corporate goodwill by allowing them to become part | | | | elements of the prospectus that need to be clarified |
| owners, it can also motivate increased productivity, | | | | or explained in more detail. |
| morale and loyalty by connecting the employees' | | | | This process can take months; however, the timing is |
| financial future to the company's success. | | | | largely within your control. It depends, in significant |
| Well-motivated employees create more efficient and | | | | part, on your ability to promptly respond with the |
| effective operations, which may translate into higher | | | | requested information. |
| corporate earnings. These, in turn, potentially, boost | | | | 3. Conduct the offering. The offering circular and |
| share price. | | | | other required documents must be filed with the |
| Higher earnings also attract investors because they | | | | state, and specified fees paid. After the documents |
| lower the price-earnings (P/E) ratio. Investors may | | | | have been cleared by the state, the small business |
| buy your stock, which may increase in price under | | | | issuer may then go out to the general Nevada public |
| the economic laws of supply and demand, raising it to | | | | and make its securities offering. |
| a new point of equilibrium. | | | | Each company has a minimum and a maximum |
| A higher stock price may mean a higher net worth | | | | offering amount. All funds are held in escrow until the |
| for you and for your company's investors.o Gain | | | | minimum is reached; if the minimum is not reached, |
| prestige, credibility and visibility. Status as a public | | | | then funds are returned to investors. Once the |
| company is more prestigious than that of a private | | | | maximum is reached, there can be no additional |
| company. Don't just think of this as ego strokes; | | | | security sales for six months from the data of |
| there are tangible benefits to you and your business | | | | offering close, if it is the same type of offering. This |
| in being a public company. | | | | is normally not what happens. For instance, this kind |
| Ownership of stock in a public company may help the | | | | of offering falls under 504 registration rules, and once |
| principals to eliminate personal guarantees made to | | | | you became public you would normally not do |
| lenders on behalf of the company. | | | | another 504 during the life of the company. |
| Often, because of the greater transparency and | | | | Development-stage companies are subject to |
| increased credibility of public companies, lenders, | | | | additional restrictions. |
| vendors and suppliers are more apt to do business | | | | While there are restrictions on how the offering can |
| with them. | | | | be advertised, generally speaking, any Nevada |
| A public stock offering enhances a company's | | | | resident can buy shares. |
| prestige by conveying a perception of stability - a | | | | However, only an officer or director of the company, |
| useful tool in recruiting key employees, as well as in | | | | a Series 63-licensed Agent of the Issuer, or a |
| marketing products and services. | | | | FINRA-licensed broker/dealer can represent your |
| Sharing ownership with the public enhances the | | | | offering and sell securities in your behalf. |
| company's recognition and reputation, and increases | | | | To qualify as an Agent of the Issuer, an individual |
| its business opportunities through the heightened | | | | must pass Nevada's licensed security Series 63 or 66 |
| visibility it gains as a result of having its stock trading | | | | examination, complete and file its Form U-4 (Uniform |
| in the public markets. | | | | Application for Securities Industry Registration or |
| Public status can be leveraged when marketing goods | | | | Transfer), and pay a filing fee determined by state |
| and services. Often, a company's suppliers and | | | | regulations, currently $110. The preparation for this |
| consumers become shareholders, which may | | | | license takes eight hours of on-line study, and the |
| encourage continued or even increased business, and | | | | examination is a one-hour test. Most applicants pass |
| thus offer an advantage over a private enterprise. | | | | on the first try. |
| Lenders and suppliers may perceive the public | | | | Licensed agents and broker/dealers may charge a |
| company as a safer credit risk, enhancing its | | | | commission of up to 10% on each stock sale; |
| opportunities for favorable financing terms. | | | | officers and directors of the company may not |
| Public firms tend to have higher profiles than private | | | | receive a commission. |
| ones. Therefore, a public offering can generate | | | | 4. Complete the paperwork. Once the offering is |
| publicity that is helpful when marketing your | | | | closed and funds have been released to the issuing |
| company. This is especially important in industries | | | | company, the company must promptly sign all |
| where success requires customers and suppliers to | | | | executed stock subscription agreements, returning a |
| make long-term commitments - as is the case in the | | | | copy to each investor. |
| software industry. | | | | A stock certificate, with a CUSIP number, must also |
| Public companies are more likely to receive media | | | | be provided to the investor. A CUSIP number is an |
| attention than are private ones. A strong ad | | | | industry code that uniquely identifies stocks and |
| campaign, coupled with media initiatives, has the | | | | bonds and appears on the face of publicly traded |
| potential to increase sales and revenue, new business | | | | securities. The Committee on Uniform Securities |
| development and strategic alliances. In other words, a | | | | Identification Procedures oversees the entire system, |
| successful public offering can get your story out to | | | | which is used in Canada and the U.S. These identifiers |
| the world, and attract the attention of potential | | | | are used to record all stock buy and sell orders. |
| customers, partners or merger candidates. | | | | Typically, some additional forms and paperwork must |
| Let us not forget the ego strokes. The number of | | | | also be completed and filed. |
| public companies is only a small fraction of the | | | | It is important to find a reputable stock transfer |
| plethora of private firms, so being the CEO of a | | | | agent who is experienced at working with small, |
| public company vaults you into an elite class of | | | | publicly traded companies to avoid problems on stock |
| executives. The networking opportunities this | | | | issuance to shareholders, and assure that your |
| connection creates can pay great social and | | | | offering close goes as cleanly and smoothly as |
| economic dividends.o Improve opportunities for | | | | possible. Nevada has several stock transfer agency |
| mergers, acquisitions. Once a company is public and | | | | companies with excellent reputations. |
| the market for its stock established, the stock can | | | | 5. Become a listed company. When the offering has |
| be considered as valuable as cash when acquiring | | | | been completed and the company has accepted the |
| other businesses. | | | | subscription agreements, you will want to become a |
| A successful IPO can have a dramatic effect on a | | | | fully reporting company with the SEC by the filing of |
| company's profile, as well as its perceived | | | | a Form 10-SB, and finding a market maker to sponsor |
| competitiveness and stability. These perceptions can | | | | your company for trade on the OTCBB (see below). |
| lead to expanded business relationships and added | | | | You will go effective with in 60 days of filing the |
| consumer confidence. | | | | 10SB or Form 10; however, your company will not be |
| Value assessments of private companies often | | | | approved for trading until you clear the comments |
| reflect illiquidity, which depresses their valuations; but | | | | issued by the SEC. |
| a successful public offering may increase a company's | | | | Before being cleared to sell their securities and again |
| valuation. This, in turn, may lead to a variety of | | | | after the offering has closed, they must file what is |
| opportunities for mergers and acquisitions. | | | | known as a "Form D" with the SEC. Form D is simply |
| A public company is better able to capitalize on those | | | | a brief notice that includes the names and addresses |
| opportunities via a return to the public markets for | | | | of the company's officers, directors and shareholders, |
| another offering. With this added ability to raise more | | | | but contains little other information about the |
| capital, a public company has a better chance to | | | | company. |
| finance a cash acquisition. | | | | The OTC Bulletin Board is a regulated stock quotation |
| A public company also has the advantage of using | | | | service in the U.S., managed by FINRA, for stocks |
| the market's valuation when exchanging stock in an | | | | that are not listed on one of the major U.S. |
| acquisition. Legal disclosure requirements offer merger | | | | exchanges. It displays real-time quotes, last-sale |
| candidates the assurance of shareholder scrutiny and | | | | prices, and volume information in over-the-counter |
| accurate reporting of the financial condition and | | | | (OTC) equity securities that do not meet the market |
| solvency of the public company. Moreover, using | | | | capitalization, ownership, or other requirements of |
| stock to acquire another company can be simpler and | | | | major stock exchanges - or for companies that |
| less costly than other methods.o Build an exit | | | | choose not to have their shares listed on such |
| strategy. One of the key benefits of a public offering | | | | exchanges. You can go to to learn more about this |
| is that the company's stock may eventually become | | | | regulated stock market. |
| liquid, offering rewards and financial freedom, as well | | | | With new rules in place, the OTC Bulletin Board today |
| as an exit strategy for the founders, employees and | | | | is home only to fully reporting companies. |
| investors. | | | | Your company must secure a market maker or |
| When the time is right for you, you may distribute | | | | dealer to sponsor it for trade on the OTCBB, The |
| some of your shares in your company to your heirs, | | | | market maker files with FINRA a "Form15c2-11," |
| protect your assets using powerful strategies | | | | which provides all the filings and disclosures that will |
| available only to owners of private and public | | | | allow a reporting public company's securities to be |
| companies, and plan for your retirement. Do plan to | | | | quoted on the OTCBB. |
| take advantage of Nevada's asset protection laws, | | | | 6. The brass ring. Once your company has its ticker |
| which are some of the best in the country. (For | | | | symbol and is quoted - perhaps even trading - on the |
| details, see our white paper "Asset Protection.")o | | | | OTCBB, your shareholders will have a potential |
| Increase personal wealth. There's a psychological | | | | market for the shares they purchased in the |
| sense of financial success that results from bringing | | | | state-registered direct public offering. |
| your company public, but the personal benefits are | | | | Remember, now that you are a fully reporting |
| even more tangible. Going public makes you rich - at | | | | company, you are subject to all of the SEC filing |
| least on paper. | | | | requirements, including, but not limited to:o Annual |
| Take one example. Founded in 2000 with the owner | | | | report (Form 10-K)o Annual audit by an independent |
| working out of his home, a small S corporation | | | | accounting firmo Quarterly reports (Form 10-Q) and |
| became a C corporation, was capitalized at | | | | accounting reviewso Disclosure of material events |
| approximately $85,000 and generated revenues of | | | | (Form 8-K)o Section 16 filings for officers and |
| $30,000 for the first year of operations, $131,000 for | | | | directors disclosing stock ownership in the company |
| the second. | | | | (Forms 3, 4, 13D, 13G). |
| The owner then decided to seek additional capital for | | | | Closing Thoughts |
| his business. | | | | The Nevada Affordable IPO Alternative for SMEs fills |
| "For years I had watched companies with publicly | | | | the demanding gap in capital-raising between a |
| traded stock, especially the small ones," he said. | | | | friends-and-family private offering and a lengthy, |
| "Some of them were smaller than my business and | | | | expensive, full-blown, traditional IPO. |
| yet were listed on the OTCBB." So he thought, "Why | | | | By making the process available, Nevada has created |
| not my company?" even though he didn't know a | | | | this steppingstone to help small businesses reach the |
| thing about a state-registered offering at the time." | | | | national public capital markets. It allows you to work |
| Working with a knowledgeable, experienced, | | | | through the issues on a smaller, more manageable |
| Nevada-based consulting firm, the owner filed for a | | | | scale first, and can provide the capital needed for the |
| self-distributed sale of securities via a | | | | remainder of the journey. |
| Registration-by-Qualification in the state of Nevada. | | | | The list of benefits - for incorporating in Nevada ... for |
| He began the process in March 2001, took six | | | | raising capital for your company ... and for getting to |
| months to complete all the paperwork, and closed | | | | a trading platform via the Nevada Affordable IPO |
| the offering in March 2002. | | | | Alternative for SMEs - is long and varied:o |
| "It's not hard," he said. "It just takes some time to | | | | Pro-business securities lawso Favorable corporate tax |
| prepare, and you need to work with people who | | | | lawso No corporate taxeso Pro-active positive |
| know what they're doing." | | | | regulations for small businesseso ... and more |
| According to the owner, his offering raised $105,000 | | | | On the other hand, the list of potential objections, |
| from sales of unrestricted common stock at $0.10 | | | | while not to be taken lightly, is comparatively short. |
| per share. This brought his company's paid-in capital | | | | Obviously it takes time to evaluate such an important |
| to just under $200,000. | | | | decision - time and information. Although this white |
| With hard work and the boost gained from its public | | | | paper is a good start, if you're seriously interested |
| status, his company's 2002 revenues jumped to | | | | you might want to contact an experienced, |
| $209,000. By 2004, the company's year-end | | | | knowledgeable and reputable consultant who can |
| revenues had reached approximately $550,000, | | | | inform you in depth and guide you through your next |
| according to the owner. | | | | steps, whatever they might be. |