Dive into the hidden expenses of Reg CF - Don't let unexpected costs hinder your startup's journey to success!

Funding Portal Fees: For Regulation Crowdfunding, offerings must occur on a FINRA-approved funding portal. Such portals facilitate the consolidation of your information, streamlining the fundraising process. We offer assistance in selecting the appropriate platform. The cost for this service generally ranges from 5-10% of the total offering, often representing the most significant expense.

Legal Assistance: While many funding portals handle the Form C submission to the SEC, hiring a securities attorney for contract drafting, subscription document preparation, and legal advice on securities is advisable. Some portals provide templates to reduce legal costs. These legal fees can vary from $1,000 to $10,000, based on specific requirements.

Auditing Costs: Engaging a CPA to review financials before filing SEC Form C is a crucial early step. The cost for this service ranges from $1,000 to $7,000, depending on the complexity and clarity of the financials.

Escrow Services: Reg CF mandates that all raised funds be held in escrow. An escrow provider is necessary when filing Form C. While included in the fees of most funding portals, if not, it may incur a one-time cost of $500-$5,000. We can assist in connecting you with suitable escrow providers.

SEC-Registered Stock Transfer Agent: Managing shareholder lists and capitalization reports, facilitating stock transfers, and providing shareholder support in compliance with SEC regulations may require an SEC transfer agent. Colonial Stock Transfer offers these services at minimal costs. Further information on transfer agent services and requirements is available upon request.

Crowdfunding Marketing Services: The choice of funding portal might necessitate hiring a third-party marketing firm, especially for robust website and social media campaigns. Specialized marketing firms in crowdfunding can be a significant investment, often costing several thousand dollars monthly to maximize investor attraction.

Ongoing Offering Expenses: During the offering, expenses such as Know Your Customer (KYC) and Anti-Money Laundering (AML) search fees, and payment processing fees for credit cards, ACH, and wire transfers may arise. Some funding portals cover these costs, while others do not.

Note: It's important to consider additional marketing expenses, as digital advertising alone can account for up to 10% of the fundraising amount.

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