Filing Form D vs Going Public

Filing Form D and going public are two very different things. Filing for an initial public offering, or going public, entails filing an S-1 Form with the Securities and Exchange Commission (S.E.C.) along with a company audit, certified financial statements and review by attorneys as well as the Securities and Exchange Commission before dealing with the regulation placed on companies by the stock exchanges like OTC markets, NASDAQ, and the New York Stock Exchange. Form D allows a company to register Securities with the S.E.C. under an exemption (see Rule 504, 505 or 506 Regulation D or Section 4(6) of The Securities Act of 1933).

Besides the large difference in cost, with a Form D filing currently costing under $1,000 and options to take your company public cost over $100,000 at the bare minimum, filing a Form D allows you to raise capital without registration. Thus, the reason Form D is titled “Form D – Notice of Exempt Offering of Securities”.  Meanwhile, going public has the allure of being able to sell your securities to anyone. The road to a successful initial public offering can be time-consuming and range from 3 months to over a year depending on disclosures and due diligence. As mentioned, other fees come along with an IPO, such as attorney fees, accounting fees, auditing fees and the fees charged by the stock exchanges. Also there are investor relations fees, shareholder communications costs, SEC filing fees for quarterly and annual reports, SEC fees anytime a board member is added to the team or a material action has taken place, etc.

Form D often comes just before an initial public offering, generally known as a seed round. Filing Form D with the S.E.C. gives investors assurances that you are being compliant with the Securities and Exchange Commission’s regulations. More information on Form D can be found here. If you are looking to raise capital under an exemption then filing Form D is the answer. We can file your Form D with the S.E.C. generally on the same business day. If you have any questions about filing Form D with the SEC. or are you ready to file your Form D? Email us today

Our Form D filing service is an extension of our SEC Edgar Form Filing Services, part of Cervitude Investor Relations. Our SEC Edgar Form Filing Services are a quick and professional solution for filing your Form D or any other form with the Securities and Exchange Commission. See more about our Form D Filing Services here.

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