If you are a non-US citizen who is interested in investing in Pre-IPO investment opportunities, you might find yourself locked out of certain investment opportunities.
And even though other portals accept foreign investors across all their deals, at Equifund, many of our Issuers choose not to.
Why? Three reasons…
- All offers and sales of securities (i.e. Pre-IPO stocks) in the U.S. must be registered with the SEC as part of a public offering (i.e. an IPO), or it must be done through something called an “Exempt Offering.”
The JOBS Act provides the framework for the most commonly used Exempt Offerings – Regulation D (Reg D) Regulation A (Reg A+) and Regulation Crowdfunding (Reg CF).
However, in order for a company to raise money (called an “Issuer”) under these frameworks, they have to comply with certain rules and regulations.
One of those is ensuring all investors meet the minimum requirements for the exemption being used.
This means that in order to accept any investment from a non US-citizen, the Issuer must bear the legal burden of assuring the exempt offering meets the requirements of every country of residence they accept investments from!
For this reason, some Issuers will refuse to accept any investment from anyone who doesn’t have a US Taxpayer Identification Number (TIN).
But even if they do accept your investment, there’s still one other problem you’ll have to deal with…
- The taxman wants their cut of any gains you might make from investing in US-based companies.
That’s right. If you own any US-based assets you are required to file a tax return to report any gains/losses.
And as much as we know our investors wouldn’t try to go around Uncle Sam and escape a tax burden…
- You could run into serious problems down the road proving you lawfully own the securities, which in turn, will make it difficult to sell your Pre-IPO investments.
This means even if you do happen to hit one of those “life changing” gains, you could literally be holding a lottery ticket you can’t cash in…
All because you didn’t fill out a simple form.
However, with some relatively simple planning – and some patience – a non-US citizen can obtain a TIN (and by extension, invest without restrictions in the US).
That’s why we’ve put together this free report called “The International Pre-IPO Investor” for you to download for free.
Yours for investing equality,
Jordan Gillissie – CEO