How Can I Be Sure I Am a Michigan Resident?
You can verify that you are a Michigan resident if you possess any of the following: A valid operator’s license, a valid chauffeur’s license, an official personal identification card issued by the state, a current Michigan voter registration, a signed affidavit as described in Sec. 7cc(2) of the General Property Tax Act (1893 PA 206, MCL 211.7cc) that indicates that you own and occupy property in this state as your principal residence, or any other record or document issued by this state that establishes that your principal residence is in Michigan).
How Can I Be Sure I Am a Michigan Business?
If you own/run/operate a Michigan business that is in accordance with the provisions of SEC Rule 147, a.k.a. 17 CFR 230.147, then you are in the right place. Rule 147 states your business must satisfy the following to qualify:
– Be incorporated or organized in Michigan
– Derive at least 80 percent of your gross revenue from Michigan
- (unless you have not had gross revenue in excess of $5,000 for your most recently completed twelve-month fiscal period, in which case this provision does not apply to you)
– You had, at the end of your most recent semi-annual fiscal period prior to opening your securities offering, at least 80 percent of your assets located within Michigan.
– You intend to use and use at least 80 percent of the net proceeds from a security offering conducted under the MILE in connection with the operation of a business or of real property, the purchase of real property, or the rendering of services located within Michigan.
– Your principal office is located within Michigan.
What If I Invest in a Business That Ends Up Not Meeting Its Funding Goal?
You will receive a full refund of your investment if the business does not reach its funding goal by the time listed in its application to the state or within twelve months—whichever is earlier. This is per a provision within the MILE. The bank used by the business will return payments to investors and may contract to collect necessary fees from the business regardless of whether the target amount is reached.
What If a Non-Michigan-Resident Purchases a Security in My Business? Does That Ruin My Campaign?
According to the MILE, when an investor purchases a security in your business, the investor is representing himself or herself as a “Michigan resident” and signs a representation to that effect. Therefore, the MILE further provides that should it turn out that the investor was not a Michigan resident at the time of the security purchase, the investment contract between that investor and the business is void. The rest of the security offering/crowdfunding campaign remains intact and unaffected. The intra-state nature of the offering is protected. This protection for the small businesses is unique to the Great Lake State!