b'How to Legally Raise Private MoneySome intrastate exemptions may restrict the number of persons to whom an issuer can make offers. This means you have to keep track of how many people you told about your offering; or they may limit the number of in-vestors to whom you can make a sale. A summary of the rules for a typical intrastate offering are provided below: Issuer and investors are all residents of a single state80% of property or revenue is in the same stateIssuer compliance with state blue sky lawsNo federal filing or reporting requiredMay require state filing or pre-approvalIf you choose an intrastate exemption for your securities offering, you should be able to recite the applicable law by code number. After all, if you dont know the code, how will you ever be able to comply with its rules? You also may need to file notice with the state securities agency before you make offers or sales. Certain exemptions may require that you submit your offering documents before you start making offers to investors. RULE 504LIMITED OFFERS OF UP TO $5 MILLIONRule 504 9 is the exemption for limited offerings not exceeding $5 mil-lion in sales within a 12-month period. No ongoing reporting to the SEC is required, beyond filing of the initial Form D with the SEC. Remember that the Rule 504 exemption does not pre-empt state laws, so such offer-ings are subject to state regulation. This means you might need to also follow the states rules for an intrastate exemption before being allowed to sell Rule 504 securities in your state. The state rules may allow adver-tising, but if advertising is allowed, the SEC restricts sales to accredited investors only. Otherwise, per the SEC, 10These securities may be sold to any number and type of investor, and the issuer is not subject to spe-cific disclosure requirements. Successive Rule 504 offerings may be ag-gregated, meaning any securities sold within the past 12 months will be 9 The complete regulation can be found at 17 CFR 230.504 10 SEE Investor Bulletin: Private Placements Under Regulation D re Rule 504 52'