Do I need to register a Kickstarter or GoFundMe campaign?

No. Rewards and donation campaigns generally aren’t securities, so there’s no securities registration. You still have to deliver what you promised and report the funds as income.

Can I give investors equity through crowdfunding?

Yes — through Regulation Crowdfunding, the Texas intrastate exemption, or another exemption, and generally through a registered funding portal. What you can’t do is sell stock or profit shares to the public without registering the offering or qualifying for an exemption.

How much can I raise through equity crowdfunding?

Federal Reg CF allows up to $5 million in any rolling 12-month period. The Texas intrastate exemption has its own limits set by the Texas State Securities Board; check the current figures before relying on it.

What happens if I sell securities without complying?

It’s a securities-law violation under federal and Texas law. Consequences can include investors’ right to rescind (recover their investment), civil liability, and regulatory enforcement. The cost of doing it wrong dwarfs the cost of doing it right. Raising money is one of the highest-stakes legal decisions a young company makes, and the rules turn on details specific to your offering. Reidel Law Firm advises Texas business owners on entity setup and capital-raising questions on transparent flat fees — talk to a Texas business attorney before you launch a raise.

Is Crowdfunding Legal? Rules for Texas Businesses

Yes, crowdfunding is legal — but how heavily it’s regulated depends entirely on what backers get in return. If you give them a product, a perk, or nothing at all (rewards and donation crowdfunding on platforms like Kickstarter, Indiegogo, and GoFundMe), you operate largely outside securities law. The moment you offer backers a financial stake — equity, a share of profits, or a promise to repay with interest — you are selling securities, and federal and Texas securities rules apply. For a business owner deciding how to fund a ven