This type of an initial public offering IPO is exempt from Federal regulations. The difficult part of dealing with all the different states is that the laws in each state are different. Most of the states securities regulations are modeled after the Uniform Securities Act as drafted by the National Conference of Commissioners on Uniform State Laws. Despite this, they all put their own little spin on things and all have their own small differences. Therefore, it is important to find out beforehand what is permitted, what is not permitted, and what forms need to be followed.
Some states allow specific state forms to be filed instead.
Some don't require all these forms. And some require additional forms to be filed. Even states with identical language may have different interpretations. Knowing that dealing with the states can be difficult and time consuming, the states have very good personnel available to answer questions and assist filers. This is very important for small companies undergoing a small initial public offering IPO and particularly SCOR offerings.