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Crowdfunding Legitimized by New Act -- The ISBA Confirms

Question: I have a great idea for a new business and need significant capital to get it going, but I do not have personal connections to investors. Can I use crowdfunding sites on the Internet to get equity investing? Answer: A change in federal law now allows entrepreneurs who want to finance their start-ups through equity investing (or offering shares of stock) to make the request on Internet sites without having to register shares of their company for public trading. The new law is part of the Jumpstart Our Business Startups Act, which enables businesses to raise up to $1 million a year online.   For more information about Illinois law, visit www.illinoislawyerfinder.com. If you have a legal question, send it to illinoislawcolumn@isba.org. Illinois Law Now is a series of newspaper and internet posts prepared by the Illinois State Bar Association that address legal issues of interest to the public. For additional information about the law, visit http://www.illinoislawyerfinder.com/legal-faqs

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