Any investment contract that gives a party to the contract evidence of a debt or a business participation right can be a security covered by the Federal Securities Act of 1933. Certain stock issue transactions are also exempt (i.e., exempt from registration with the Securities and Exchange Commission).
The most common exempt transaction that close corporations take advantage of is the intrastate offering. To qualify for this exemption, both the investors and the issuer must all be residents of the same state. The issuer must also meet the following requirements:
" 80% of its assets must be located in the state;
" 80% of its income must be earned from operations within the state; and
" 80% of the proceeds from the sale must be used on operations within the state.
Also, for nine months after the issuance, the stock can only be sold to state residents.
If the offering is not exempt, then the issuer must go through the registration process with the Securities and Exchange Commission.
Wisconsin Promotion Agreement for the Purpose of Raising Money for a Business is a legal contract that outlines the terms and conditions between a business and a promotion partner to generate funds. This agreement enables businesses in Wisconsin to secure financial support by partnering with organizations, individuals, or entities that promote the business in exchange for a portion of the proceeds. In Wisconsin, there are different types of Promotion Agreements for the Purpose of Raising Money for a Business. Some common variations include: 1. Affiliate Partnership Promotion Agreement: This agreement involves a business partnering with affiliates who drive traffic to the business's website or promote their products/services through various marketing channels. Affiliates receive a commission based on the sales or leads they generate for the business. 2. Event Sponsorship Promotion Agreement: Businesses can enter into agreements with event organizers to sponsor events in exchange for promotional benefits. This type of agreement allows businesses to gain exposure among a specific target audience attending the event, raising brand awareness and attracting potential customers. 3. Crowdfunding Promotion Agreement: This type of agreement involves a business collaborating with crowdfunding platforms or individuals to raise funds for the business's projects or ventures. In return, the promotion partner usually receives a percentage of the funds raised and may provide additional marketing support. 4. Influencer Partnership Promotion Agreement: In today's digitally connected world, businesses often collaborate with social media influencers or bloggers to promote their products or services. This agreement defines the terms and obligations between the business and the influencer, such as compensation, content creation, and promotional guidelines. Key elements to include in a Wisconsin Promotion Agreement for the Purpose of Raising Money for a Business may consist of: 1. Parties Involved: Clearly identify the participating business and the promotion partner(s) in the agreement. 2. Objective: Define the goals and objectives of the promotion agreement, whether it's to raise funds, increase sales, or enhance brand visibility. 3. Terms and Duration: Specify the effective date, duration, and renewal conditions of the agreement. 4. Promotional Activities: Outline the specific promotional activities that the promotion partner will undertake to raise money for the business, such as marketing campaigns, advertising, or organizing events. 5. Compensation and Revenue Share: Clearly define the compensation structure, including the percentage of sales, leads, or funds that the promotion partner will receive as their commission. 6. Deliverables and Performance Metrics: Clearly state the expected deliverables from the promotion partner, such as monthly sales reports, website traffic metrics, or social media engagement rates. 7. Intellectual Property: Address intellectual property rights, ensuring that the business retains ownership and control over its trademarks, copyrights, and other intellectual property used in the promotion. 8. Termination: Define the conditions, notice period, and grounds for termination of the agreement. 9. Confidentiality and Non-disclosure: Include provisions to protect any confidential information shared between the parties during the promotion agreement. 10. Governing Law and Jurisdiction: Specify that the agreement will be governed by Wisconsin state laws and any disputes will be resolved within the designated jurisdiction. Remember that while this content provides a detailed description of Wisconsin Promotion Agreement for the Purpose of Raising Money for a Business, it's always crucial to consult a legal professional to ensure compliance with state laws and tailor the agreement to the specific needs and circumstances of the business.
