Series 24: Intrastate Exemptions: Rules 147 And 147A

Intrastate Exemptions: Rules 147 and 147A

For businesses that conduct almost all their business within one state, there is the Rule 147 intrastate exemption, which relieves them of the requirement to register with the SEC. To meet the requirements of this exemption, the business must have its principal place of business in the state and must satisfy at least one of the following:

• • 80% of revenues must come from within the state
• • 80% of business assets must come from within the state
• • 80% of the proceeds must be used in-state
• • The majority of people employed by the issuer must live in the state

If the issuer meets these requirements, it usually faces no limit on the size of its offering or the number of its purchasers. However, it is t