Successful Internet offerings to date include full registrations on Forms SB-1 and SB-2, limited public offerings pursuant to Regulation A, and exempt offerings under Regulation D, Rule 504 of the Securities Act of 1933.
The method chosen depends on the amount of capital needed.
For example, proceeds from an exempt offering or offerings under Regulation D, Rule 504, may not exceed $1,000,000 in a given year, while a Regulation A offering subject may to yield up to $5,000,000 in proceeds.
For any offering where SEC registration is needed, the company prepares a preliminary offering circular or prospectus with the help of a securities lawyer and then submits it to the SEC for approval.
Pending approval, the preliminary document, or a summary, is posted on an Internet Web page (and perhaps also described on product packaging)
to elicit indications of interest from the general public.