If you complete a successful Regulation Crowdfunding offering, the law requires that you file an annual report in a year to update the SEC and your investors.
The annual report is due no later than 120 days after the end of your fiscal year, which, for most companies, means it’s due at the end of April.
Wefunder charges a $500 flat fee to file your annual report, or you can follow the steps below to file it yourself.
Fill out your annual report (select Form C-AR): https://www.sec.gov/files/formc.pdf.
You should fill out:
- Cover Sheet
- Questions: 1, 3, 4, 5, 6, 7, 8, 17, 24, 25, 26, 27, 28, 29
- (Also, please note that your financials do not need to be reviewed by a CPA)
You/your lawyer files it here: https://www.onlineforms.edgarfiling.sec.gov/Welcome/EDGAROnlineFormsLogin.htm
It's a good idea to post an update to your Wefunder investors with the link to the filed annual report and to have the annual report linked somewhere on your company website.
If you neglect to file an annual report, you won’t be able to raise future Regulation Crowdfunding rounds until you file the annual report. However, you may still raise funds from accredited investors using Regulation D only.
Different companies have different reporting requirements:
- If your company was dissolved, liquidated all your shares, or repurchased all issued shares, you do not need to file an annual report.
- If you have fewer than 300 shareholders, you only need to file one annual report. (As all Wefunder investors count as one shareholder, this likely means you only need to file one annual report unless you have a lot of outside shareholders).
- If you have more than 300 shareholders but less than $10 million in assets, you must file three annual reports before being exempt.