Do my company’s financials need to be audited?
For Regulation A+ (Title IV), your company can begin a “test the waters” campaign without audited financials. If your company decides to proceed with Regulation A+ offering on StartEngine, your company’s financials will need to be audited, as StartEngine intends to support only companies offering securities pursuant to Tier 2 of Regulation A+.
For Regulation Crowdfunding (Title III), the amount of money your company is looking to raise will determine the filing requirements:
Companies looking to raise under $100,000 must submit certain financial documents certified by their principle executive officer, but do not have to be audited or reviewed by a CPA.
Companies looking to raise from $100,000.01-$500,000 are required to provide financial statements that have been reviewed by an independent CPA.
- Companies looking to raise more than $500,000 up to $1,000,000 are required to provide financial statements audited by a CPA.