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Step 1
Select an accountant, attorney and underwriter to help you take the company public. Seek an underwriter who will make a "firm commitment"; that is, agree to buy all shares not sold in the public offering.
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Step 2
Get the team together with your officers and directors to discuss goals, underwriting terms, schedules and other details.
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Step 3
Start work on a preliminary draft of the prospectus - also called a red herring - and related Securities and Exchange Commission documents.
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Step 4
Bring in an independent auditor to audit your financial records.
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Step 5
Have the attorney and others on the team ensure the prospectus complies with SEC regulations. You likely will go through several drafts before the SEC approves the document.
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Step 6
File the prospectus with the SEC and pay filing fees.
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Step 7
File required state and National Association of Securities Dealers documents.
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Step 8
Print the red herring and distribute it to prospective investors.
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Step 9
Correspond with SEC regarding its questions, comments and concerns about the prospectus. Make corrections and changes as required.
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Step 10
Sign a final agreement with the undewriter.
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Step 11
Establish an escrow account in which to deposit money that will be distributed at closing.
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Step 12
Print the final prospectus and distribute it to prospective investors. Also have stock certificates printed.
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Step 13
Run tombstone ads, announcing the offering.
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Step 14
Price and close the offering.
