b'6. Choose Your Securities ExemptionDisclosures and SEC pre-approval are requiredNo audit requirementsRegulation A+, Tier 2 Tier 2 will allow issuers who meet certain requirements to raise up to $50 million in a 12-month period. Issuers are required to perform an audit prior to SEC approval and for a minimum of three years following SEC approval. Issuers must use a transfer agent to handle funds and must meet certain ongoing reporting requirements similar to a public small-er reporting company, including filing annual, semiannual and current event reports.Despite the audit and additional filing requirements, Tier 2 pre-empts the state pre-approval requirements under Tier 1, making Tier 2 a more appealing option if you wish to raise money from investors in multiple states. Filing of certain documents with state securities regulators may still be required. The North American Securities Administrators Association (NASAA) maintains information about the state filing requirements for Regulation A+ offerings at www.nasaa.org. A summary of the rules for Regulation A+ (Tier 2) offerings:You are limited to raising $50 million in a 12-month period; it may be renewed annuallyYou may include an unlimited number of investors with limited prequalification requirementsNo state pre-approval is requiredDisclosures and SEC pre-approval are required via electronic filingsThe issuer will be subject to audit requirementsREGULATION CROWDFUNDINGRegulation Crowdfunding (also known as Regulation CF) was autho-rized in Title III of the JOBS Act. It specifically allows for-profit startup companies and small businesses to raise capital on the internet, provid-ing they follow a specific set of rules. The final regulations were adopted and Regulation Crowdfunding became legal on May 16, 2016. 61'