Do I need to be
licensed to sell to investors?
No, not
(yet) on the federal level. The SEC (Securities and Exchange Commission) does not
regulate this investment.
On the
state level most states now require the investment to be registered with
the state securities commission and the seller, also, must be registered to sell
securities.
Check with the insurance department and the agency that regulates investments
for the state in which you plan to operate. In Florida and California, for example, you
would register with the insurance department but in California you also must
register with the Department of Corporations. In Indiana you would register with the
securities commission. In some states, the agency that regulates securities is
the Banking Commission, or Commerce Department.
