Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

The Mechanism

5 Aug 2026 · 1 min

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1:08

In this concise monologue, the speaker explains how a seemingly innocuous LinkedIn post about a private securities deal can constitute a "general solicitation" that invalidates an entire Rule 506 offering. Rule 506 permits private placements only when the issuer does not engage in general solicitation, which is defined as any communication about the offering to individuals without a documented pre‑existing relationship. The speaker notes that typical LinkedIn networks contain hundreds of contacts with whom the issuer has never had a financial conversation, documented investment experience, or accreditation verification. A single post that any of these contacts sees and could respond to triggers a general solicitation, which then taints the whole offering and all existing investors. The speaker points viewers to a longer video for a full breakdown, including what can still be posted and how to remediate if the mistake has already been made.

Chapters

In post about your deal can void your entire 506 offering. Here's the exact mechanism. 506 has one condition, no general solicitation. And solicitation doesn't mean paid ads. It means any communication that mentions your offering to anyone with whom you haven't built a preexisting documented relationship first. Your LinkedIn network has 800 people. Most of them you've never had a deal or a real financial conversation with. You've never documented their investment experience. You've never evaluated whether they're accredited. The moment any one of these 800 people sees a post about your deal and could respond to it, that's a general solicitation. Here's what makes it worse. One act of solicitation doesn't just affect that person. It taints the whole offering, every investor in the deal. You weren't running ads. You were just posting. That's why this catches people. The full breakdown is in the long-form video, what you can still post and what to do if you've already made that mistake. Link in the bio.