Wefunder Logo

Got a question? We'd love to help!

Can't find what you're looking for?

Email us: support@wefunder.com

Financial Requirements: Regulation Crowdfunding

The law requires that you disclose certain financial information in order to raise under Reg CF. The specific financial reporting requirements depend on two factors: incorporation date and raise size.

If you were incorporated last year or earlier, and raising:

  • Less than $124K: You will need 2 years of financials (2020, 2021) in GAAP (generally accepted accounting principles) format. These do not have to be reviewed by an independent CPA. Here's an example.
  • More than $124K: You will need 2 years of financials (2020, 2021) in GAAP format and a CPA Review Statement. Here's an example.
  • More than $1.235M: You will need 2 years of financials (2020, 2021) in GAAP format and a Independent Auditor's Report. Here's an example.

If you were incorporated less than 120 days ago and raising:

  • Less than $124K: You will need a cover sheet, balance sheet and footnotes for the period spanning your incorporation date up to the current date. Here's an example
  • More than $124K: You will need a cover sheet, balance sheet, and footnotes, and a CPA Review Statement. Here's an example.
  • More than $1.235M: You will need a cover sheet, balance sheet, and footnotes, and an Independent Auditor's Report.
  • If you just recently incorporated but do have 2 prior years of operating history (e.g. your company operated as an LLC for a while and then recently converted to a C-Corp), then you will need 2 years of financials (2020, 2021) in GAAP format. If you're raising >$124K, these will need to include a CPA Review Statement.

If you were incorporated more than 120 days ago, but within this year, and raising:

  • Less than $124K: You will need financials in GAAP format for the period spanning your incorporation date up to the current date.
  • More than $124K: You will need financials in GAAP format for the period spanning your incorporation date up to the current date and a CPA Review Statement. Here's an example.
  • More than $1.235M: You will need financials in GAAP format for the period spanning your incorporation date up to the current date and an Independent Auditor's Report.

*One exception - if this is your second Regulation Crowdfunding campaign and you are raising more than $618K, you will need audited financials. These will have to be completed by a CPA who is qualified to complete audits. 

With the exception of companies incorporated less than 120 days ago, this is what needs to be included in GAAP financials:

  • Cover page
  • Balance Sheet
  • Income Statement
  • Statement of Cash Flows
  • Statement of Stockholder's Equity
  • Foot notes

Foot notes are typically 2 - 5 pages and usually include accounting methodologies used, an explanation of your taxes, a summary of any debt, and a summary of outstanding equity.

Wefunder can introduce you to a CPA that can do this work for you quickly and cheaply, though feel free to use your own CPA if you prefer. 


Can't find what you're looking for?

Email us: support@wefunder.com