To “Set up CF” (Crowdfunding), specifically Equity Crowdfunding (Reg CF), you need to follow a structured legal and marketing path. As of 2026, the limit you can raise from the general public is $5 million per 12-month period.
Here is your step-by-step roadmap to getting launched:
1. Choose Your Legal Structure
- C-Corp (Recommended): If you plan to scale, raise Venture Capital later, or eventually go public. It is the cleanest for investors and avoids the “K-1” tax headache.
- LLC: Better for smaller, “lifestyle” businesses or those prioritizing cash-flow distributions. However, you will likely need to use an SPV (Special Purpose Vehicle) so you don’t end up with thousands of names on your cap table.
2. Select a Funding Portal
Under SEC rules, you cannot run an equity crowdfund on your own website. You must use a registered intermediary.
- Wefunder: Popular for “indie” creators and tech startups; very founder-friendly.
- StartEngine: Large investor base; excellent for consumer-facing products.
- Republic: High-curation platform often focused on “moonshot” startups and real estate.
3. Prepare the Legal “Form C”
Before you can take a single dollar, you must file Form C with the SEC. This includes:
- Financial Disclosures: If raising over $124,000, you typically need “Reviewed” financial statements by an independent CPA. If raising over $1.235M for the first time, you may need “Audited” statements.
- Company Officers: Background checks on all directors and “bad actor” checks.
- Use of Proceeds: A clear breakdown of exactly how you will spend the money (e.g., 40% R&D, 30% Marketing, 30% Operations).
4. Build the “Reservation” Funnel (The Pre-Launch)
Success in CF is 90% pre-launch. Most platforms won’t “feature” you until you prove you have momentum.
- The 30% Rule: You should aim to have 30% of your minimum goal “soft-committed” from your own network (friends, family, customers) before the page goes public.
- Lead Gen: Build an email list using Meta (Facebook/Instagram) ads leading to a landing page where people can “reserve” their spot.
5. Launch and Comply
- The Pitch: You need a high-quality video (under 3 minutes) and a “scroll-stopping” campaign page.
- Ongoing Reporting: Once the round closes, you are legally required to file an Annual Report (Form C-AR) with the SEC within 120 days of your fiscal year-end.
Comparison of Costs (Estimates)
| Expense | Estimated Cost |
|---|---|
| Platform Fee | 5% – 8% of total raised (plus 1-2% equity) |
| Legal/CPA Review | $2,000 – $10,000 |
| Marketing/Ads | 10% – 15% of your target raise |