Securities laws require that every time you offer security or ownership in your business, that you have to register that security with the state and/or federal government. So an exemption is something that says you don’t have to go through that process. So, if you own a business and you need to raise funds from investors, finding an exemption can save you a lot of money because registration is very expensive. The exemptions vary depending on the state and whether or not exemption is needed from the SEC as well. You need to look at who are your investors and what type of investment are you offering them and then you can find an exemption that will apply to your situation.
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