Free guide
Should you raise under 506(b) or 506(c)?
Three questions about how you will find your investors. You will see which exemption usually fits, and what to ask your securities attorney.
How will you find investors?
506(b)
You know your investors
Private invitations
506(c)
You post in public
Verify every investor
Three questions, then a plain answer to take to your attorney.
The questions
Raising with a partner? Send them the guide.
Questions
What is the difference between 506(b) and 506(c)?
Rule 506(b) lets you raise quietly from people you already have a real relationship with, but you cannot advertise the deal. Rule 506(c) lets you market the deal publicly, but every investor has to be accredited and you have to take reasonable steps to verify it.
Can I use 506(b) to raise from my followers?
Usually not just because they follow you. 506(b) needs a real relationship that existed before the deal, such as someone you have talked with and know. Watching your videos is generally not enough, which is why creators often use 506(c).
Does DoorRaise work with both?
Yes. A deal on DoorRaise is either a 506(b) or a 506(c) raise, and DoorRaise runs the investor checks, the escrow and the paperwork for either one.
Is this legal advice?
No. It is a plain-language starting point based on the usual rules of thumb. Your securities attorney decides which exemption fits your facts.
Does the quiz save my answers?
No. Your answers stay in your browser. We only count which kind of result was shown, with no names and no answers.
A general guide, not legal, tax or investment advice. DoorRaise is not a law firm. Offers on DoorRaise are open to accredited investors only. Investing involves risk, including loss of the entire investment.
Ready to raise it?
Whichever route you pick, we form the company, check every investor, hold the money in escrow and file the paperwork.