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Home | Areas of Law | Profile | Contact | Park City, Utah | |||||||||||||||||||||||||||||||
Quality is the Hallmark of Value.
My goal is to provide prompt, quality legal work at reasonable prices so clients make me their choice for legal services within my areas of expertise. I have written newsletters for clients providing information on the following legal topics: Business Organizations in Utah, Wills, Probate, Living Trusts, and Securities (Private Placements). Click on the topic and view the newsletter. Or if you prefer, please call me or send an email and I will send, at no obligation to you, a copy of the particular newsletter of your choice. My areas of expertise include: (click on any for more information)
Types of Utah business entities I help form include: Limited Liability Companies - Corporations - S Corporations - Professional Corporations - Professional Limited Liability Companies - Family Limited Liability Companies - Family Limited Partnerships - Joint Ventures Contracts Construction Contracts - Marketing and Distribution Agreements - Master Service Agreements I also assist clients in developing plans for their own property after death. This general area of my practice includes: Will drafting - Trust drafting - Revocable trusts, Including Living Trusts - Irrevocable Trusts To read my client newsletter about Wills, click here, or my client newsletter about Living Trusts, click here. I also help clients plan for the contingency of disability through "living wills," advance directives for health care, and durable powers of attorney.
Securities Laws Update: New Rule to Determine Who Qualifies as an "Accredited Investor" As mentioned above, one part of my practice is in the area of securities laws, and more specifically, private placements of securities under Rule 506 of the Securities and Exchange Commission's Regulation D. During the past year, Congress made one very important change in this area of law, a change that will affect many companies that are looking to raise money from private investors. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act became law. Included in this detailed reform legislation – aimed primarily at the reform of financial institutions – is a change to the definition of “accredited investor.” This change will have a substantial impact on many private placements of securities under the SEC’s Regulation D. The SEC classifies some investors as “accredited,” meaning generally that they require less help than others when it comes to investing in securities. Investors who are not "accredited" require special treatment, including detailed information like that given to investors in a registered public offering. This translates into extra time and expense for companies seeking to raise capital from investors. For that reason, many companies seeking to raise money through private placements limit their offerings to accredited investors only. Although the rules that separate accredited investors from other investors are somewhat arbitrary, they do give us objective standards to apply in deciding which investors require the extra time and expense. One test to determine whether a potential investor is an “accredited investor” is whether that person’s net worth exceeds $1 million. In the past, that $1 million dollar net worth could include the value of the investor’s primary residence.The new law changes the net worth rules for accredited investor status, so that the individual net worth of any natural person, or joint net worth with his or her spouse, must exceed $1 million excluding the value of the accredited investor’s primary residence. In other words, under the new law, the value of a potential investor’s primary residence cannot be counted in determining whether that investor is an “accredited investor.” This provision of the new law is effective immediately, so issuers should review their subscription and disclosure documents to ensure compliance with this provision.
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ROB@YOUNGBERGLAW.COM |
435-655-3661 or 435-649-4740 | |||||||||||||||||||||||||||||||