Equity crowdfunding now allowed in Mississippi
Starting a business in Mississippi has just become a little easier thanks to Secretary of State Delbert Hosemann.
The Secretary of State’s Office recently adopted administrative rules to allow equity crowdfunding in Mississippi. Small businesses in the state will soon be able to raise money over the Internet to help start their companies. Unlike donation crowdfunding where a person or a business collects donations, equity crowdfunding is a way for businesses to raise capital by accepting investments of small monetary amounts from multiple people.
“About two years ago the federal government came into play and said, ‘We’re going to create the JOBS Act and we’re going to allow Internet financing,’ and the Securities and Exchange Commission is to write the regulations, they never have so Mississippi’s not waiting anymore, we’re starting crowdfunding ourselves,” said Hosemann.
Hosemann said there’s a zero filing fee to start the internet financing. Once a start-up company completes the online registration, a person may invest in a business in return for equity, or partial ownership. The percentage of equity the investor receives depends on the amount of the investment.