QUOTE (kzt @ Apr 6 2010, 03:26 PM)
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As I said, the issue with this was that being able to sell stock in multiple states to random people who probably don't make an average of $200,000 per year for the last 3 years is complex and probably requires an expensive lawyer to avoid breaking the law. Then you have the state regulation of security sales...
Somehow, I missed that as the essence of your post, my apologies. Must have misread it somehow. Luckily, the states controlling security sales is (mostly) non-existant, and the fees for lawyers for corporations setting up through an in-state agent (I personally recommend Delaware and Nevada, they're the most tax-lenient and because of that have some of the best agencies) are usually reasonable for the requirements, especially for common questions like this to be answered. Hell, they probably have it as boilerplate if requested and the nice receptionist just makes a copy for $20.
You're right on one thing though, I'm no longer sure what is considered a 'sophisticated investor' by law, it didn't come up for the few startups I created (and crashed, but that's because of other skills I lacked... ah well), so, well, I honestly don't remember. What you say above makes some sense though for the regulations. Thanks.