Master Rule 506 Assistance: Nationwide Coverage
Comprehensive SEC Rule 506 Legal Guidance: Your Path to 100% Compliance Success Across the United States
The securities laws in the United States impose strict registration requirements on companies looking to raise capital through the sale of securities in US Private Capital Markets. However, there are “exemptions” available that allow companies to bypass the registration process. One such exemption is Rule 506 under Regulation D of the Securities Act, which provides companies with the opportunity to offer and sell securities in specific types of offerings (known as “private placements”) without the relatively steep costs and regulatory burden of SEC registration. Mangum & Associates can assist you in exploring the challenges of Rule 506 exempt offerings and help you navigate Regulation D successfully. Our nationwide securities law firm can provide you with comprehensive legal guidance and assistance in complying with the provisions of US securities law as you seek to raise capital in the US private capital markets.
Understanding the Challenges of Rule 506 Exemptions
The securities laws in the United States are designed to protect investors and ensure the integrity of the financial markets. However, these laws can also present challenges for your company as you seek to raise capital. Registration requirements under US federal securities laws are time-consuming, costly, and complex. The current version of Rule 506 of Regulation D provides two distinct exemptions from the onerous registration requirements: Rule 506(b) (“b” as in “bravo”) and Rule 506(c) (“c” as in “charlie”). These are attractive and widely utilized options for your company as you consider raising capital through US private capital markets. When raising capital, there is a major choice to make between claiming Rule 506(b) or Rule 506(c). These exemptions are also known as “safe harbor” exemptions. Skilled securities lawyers affiliated with Mangum & Associates will guide you as to the best fit between these two important exemptions.
While the provisions of Rule 506 offer flexibility and streamlined efficiency at the federal level and across all 50 US states and US jurisdictions, it is important to understand the challenges associated with these exemptions to avoid potential legal issues with investors and regulators. Your company must still comply with certain requirements to ensure you are eligible. For example, this includes – in the case of Rule 506(c) – the requirement to take reasonable steps to verify the accredited investor status of potential investors and take other measures to ensure compliance. Failure to meet these requirements could result in legal challenges and potential civil and criminal penalties.
Contrasting Rule 506b and 506c Offerings
In contrast to a 506(c) offering, a 506(b) offering under Regulation D prohibits general solicitation or advertising to attract investors. While this limits the pool of potential investors to those with whom your company already has a relationship, it can still be an effective way to raise capital while maintaining privacy – especially if you adopt a “two-step” or indirect marketing approach. Mangum & Associates provides expert guidance on structuring and executing 506(b) offerings, ensuring that your company complies with regulations and achieves your fundraising goals efficiently and legally. Trust in our experience to navigate the intricacies of a 506(b) offering successfully.
A 506(c) offering, a subset of Rule 506 under Regulation D, provides your company with the flexibility to solicit investments from accredited investors through general advertising and public marketing efforts. Unlike the more restrictive 506(b) offering, described above, a 506(c) offering allows issuers to cast a wider net while still targeting qualified investors. However, reasonable verification procedures must be followed to verify the investor’s accreditation status. Unlike Rule 506(b), under Rule 506(c) you can’t simply “take their word for it” that the investor is accredited. Navigating the nuances of a 506(c) offering requires expert legal guidance to ensure compliance with SEC regulations while helping boost and maximize your fundraising potential.
MANGUM & ASSOCIATES
Mangum & Associates Provide Comprehensive Legal Consultation Services
Mangum & Associates provides comprehensive legal consultation services to assist your company with your Rule 506 offering. Our securities law firm starts with an initial assessment of your company’s specific needs and goals. This assessment includes a review of financial statements, business matters, and disclosure requirements.
Based on our assessment, a strategy planning session is then conducted to develop a customized approach. This includes identifying the appropriate exemption sought under Regulation D, determining the necessary document preparation and legal guidance, and developing legal compliance strategies tailored to your company’s unique needs.

Contact Mangum & Associates Today for Guidance on Your Rule 506 Offering
Understanding and addressing the complexities of Reg D Rule 506 offerings is crucial for compliance and success in today’s regulatory landscape. By partnering with Mangum & Associates, our custom-tailored solutions and comprehensive legal services can guide you through the process seamlessly. Our proven expertise in SEC regulations and compliance, along with a track record of successful Reg D offerings and Form D filings, ensures a reliable path to compliance and confidence as you raise capital. With our step-by-step guidance, strategic planning, and PPM document drafting expertise, navigating Rule 506 becomes more manageable. Choose Mangum & Associates today as your trusted partner in achieving your Reg D Rule 506b or Reg D Rule 506c compliance and capital-raising goals.