When can I start using CrowdSource Funding?

Now that the JOBS Act has been passed and signed when can I start raising capital through CrowdSource Funding?

Soon grasshopper -- soon. First: What is this crowd-sourced funding? The bill passed! (The "Jobs Bill" apassed in April deregulates the SEC to allow emerging growth companies to raise up to a million dollars a year from an unlimited number of unaccredited investors on public forums. This means that your company can raise money in a whole new way. But it doesn't mean you can do it right now -- or how ever you want.

Next: The Rules Horay -- now the SEC needs to determine what the rules will be. they have 180 days to figure that out. Once the rules are solidified -- then there may or may not be a period of time that it takes portals to become accredited.

Need to use an accredited intermediary or portal The law requires all crowdraises to be done with either a broker/deal or an accredited intermediary. The exact process of accreditation is unknown at the time of this writing. What types of broker/dealers will or will be able to act as an intermediary is unknown as of this writing.

There are several organizations (like crowdsourcing.org) that have designed their own accreditation processes (CAPs) There are numerous efforts trying to position themselves to be a SRO (Self-Regulating Organization) for the industry. The insiders are saying that it is most likely that FINRA which regulates brokers and dealers today will probably be the same body to regulate crowdfunding portals. How this issue is resolved may have direct impact on when you will be able to start raising capital from the crowd.

Summary The short answer is probably at the begining of next year.

The long answer is when your commpany is really ready, you have developed a relationship with an accredited funding portal and they are authorized to support your crowdfunding transactions.

My reccomendation is -- do not wait until there are portal soliciting your business to launch campaigns -- start now gettin your operational, legal, accounting, leadership, insurance, marketing house in order so that when the time comes-- you can do it right!