What A Crowdfunding Transfer Agent Does And Benefits Of Using One

by | Sep 20, 2016 | Financial Services

Crowdfunding is an excellent way to build funding for a startup or small business. You can network with investors and entrepreneurs like yourself, but may also get money from individuals who support your cause. There are a variety of websites offering these services for free or for a small fee, but once you start making money, you may need a transfer agent. These companies and individuals work to remain compliant with all SEC regulations and can help you with investor equity, additional dividends and more.


Unless you’re familiar with all the ins and outs, it’s usually best to hire a professional for peace of mind. You’re confident that you’re following all the rules and investors know that their part of the stock is safe. Likewise, using professional agents may help you attract more investors.

Securities and Exchange Commission

The SEC offers a safe harbor exemption to issues who use a crowdfunding transfer agent, which can limit liability problems from investors and regulators.

Save Money

The primary goal here is to start a business or make more money for your current small business, for expansion purposes and the like. Therefore, you want as much money to go toward the company you’re creating. It doesn’t make sense to hire someone who will take a little of that earned money, but it’s best to ensure that you don’t have loose ends and liabilities with your investors.

Electronic Stocks

Whether you own a physical store or not, stock certificates can be verified online by the shareholders, making it easier on you. You won’t have to deal with all the shipping fees or risk losing the certificates.

More Help

Likewise, a crowdfunding transfer agent understands your needs and has the experience necessary to deal with certain industries. They’ll be able to help you network, find investors and much more. Visit Colonial Stock Transfer Company, Inc.