Are there state laws about selling stock to the public?
Yes. Each state has its own securities laws. Some track the federal laws and some do not. You must comply with both federal and state laws when you decide to use these methods of raising capital. If your offering is to be made under Rule 504 (sale of securities up to $1,000,000) [See previous question, “What is a Regulation D exemption?”], most states allow you to use a question and answer registration form developed by the North American Securities Administrators Association (NASAA). This form is known as the Small Corporate Offering Registration (SCOR) and is recognized by most states.
