DealMaker and Blue Sky Filings

Across the US, securities are regulated by federal securities laws, however, individual states also have their own set of securities laws, known as “Blue Sky Laws”. They exist to protect investors and ensure offered securities are registered, and that broker-dealers and investment advisors are regulated. Typically, most states require individual registration of the offering in their state, unless a specific state exemption is available. 

The company’s principal place of business in one of these states provides a good indicator that you will have to abide by that state’s laws and regulations. In addition, if residents of these states purchase 50% or greater of the aggregate amount of your offering, you may be subject to notice filing obligations.