Ensure compliance with federal and state securities laws when issuing equity or convertible notes.
Typically Rule 506(b) or 506(c) (accredited investors) or Section 4(a)(2).
If 506(c), take reasonable steps to verify. If 506(b), obtain questionnaires.
File Form D with SEC.
File state notice filings in states where investors reside.
Record new investors, shares/notes issued, and update fully diluted percentages.
Send electronic or paper certificates/notices to investors.
Obtain 409A valuation before issuing options/equity to employees.