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State Business Opportunity Laws Can Save Your Butt

State Business Opportunity Laws Can Save Your Butt
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Twenty-six states have ‘business opportunity’ laws to protect you from those idiots that claim you can make thousands of dollars while you sleep. The laws prohibit the sale of business opportunities unless you’re given a pre-sale disclosure document that must be filed with a designated state agency.

They typically cover every imaginable type of business opportunity that might be offered. If a business opportunity seller is not required to provide pre-sale disclosures by the FTC Franchise and Business Opportunity Rule, then these disclosures will almost always be required by the laws of the states listed below. If you live somewhere else take a look at one of the other states laws to see what questions you should ask.

The disclosures required by state business opportunity laws differ somewhat, and typically they provide more abbreviated information than the FTC’s Rule requires. However, most of these laws provide you important rights and remedies, including required security bonds to cover investor losses. If the opportunity you’re looking at can’t be verified with a state agency or the FTC, run don’t walk to the nearest exit.

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If you are considering purchasing a work-at-home or other business opportunity, and live in a state with a business opportunity law, find out more about the protection provided by your state statute before you invest.

Alaska (filing required)

Attorney General’s Office

Commercial and Fair Business Section

1031 W. 4th Avenue, Suite 200

Anchorage, Alaska 99501

(907) 269-5200

California (filing required)

Attorney General’s Office

Public Inquiry Unit

P.O. Box 944255

Sacramento, CA 94244-2550

Toll-free in California only (800) 952-5225

Out-of-state callers (916) 322-3360

E-Mail: piu@doj.ca.gov

Connecticut (filing required)

Department of Banking

Securities Division

260 Constitution Plaza

Hartford, CT 06103

Phone: (860) 240-8230

Toll-free: (800) 831-7225

Fax: (860) 240-8295

Website: http://www.state.ct.us/dob

E-mail: marcelle.groves@po.state.ct.us

Florida (filing required)

Dept. Agri. & Consumer Services

407 S. Calhoun St.

Finance & Accounting Section

Tallahassee, FL 32301

(850) 488-2221

(800) 342-2176 (FL only)

Georgia (no filing required)

Office of Consumer Affairs

No. 2 – Martin Luther King Dr.

Plaza Level, East Tower

Atlanta, GA 30334

(404) 656-3790

llinois (filing required)

Illinois Securities Department

Lincoln Tower

520 S. Second St. Suite 200

Springfield, IL 62701

(217)782-2256

Indiana (filing required)

Indiana Office of Attorney General

Consumer Protection Division

302 West Washington Street

IGCS 5th Floor

Indianapolis, IN 46204

(317) 232-6330

Iowa (filing required)

Securities Bureau

Second Floor

Lucas State Office Building

Des Moines, IA 50319

(515) 281-4441

Kentucky (filing required)

Office of the Attorney General

Office of Consumer Protection

1024 Capital Center Drive

Frankfort, KY 40601

(502) 573-2200 NOTE: DOESN’t Work

Louisiana (bond filing req’d)

Office of the Attorney General

Consumer Protection Section

1885 3rd St.

Baton Rouge, LA 70802

(225) 326-6460

Maine (filing required)

Banking Bureau

Securities Division

State House – Station 121

Augusta, ME 04333

(207) 624-8551

Maryland (filing required)

Attorney General’s Office

Securities Division

200 St. Paul Pl. – 20th Floor

Baltimore, MD 21202

(301) 576-6360

Michigan (notice required)

Consumer Protection Division

Dept. of the Attorney General

PO Box 30213

Lansing, MI 48909

(517) 373-7117

Minnesota (filing required)

Department of Commerce

Registration Division

133 East 7th Street

St. Paul, MN 55101

(651) 296-6328

Nebraska (filing required)

Dept. of Banking & Finance

Commerce Court

1230 “O” Street, Suite 400

PO Box 95006

Lincoln, NE, 68509-5006

1-877-471-3445

Website: http://www.ndbf.org/

New Hampshire (filing required)

Attorney General’s Office

Consumer Protection Div.

State House Annex

Concord, NH 03301

(603) 271-3641

North Carolina (filing required)

North Carolina Department of the Secretary of State

P.O. Box 29622

Raleigh, NC 27626-0622

(919) 807-2000

Ohio (no filing required)

Attorney General’s Office

Consumer Protection Section

25th Floor, State Office Tower

30 E. Broad Street – 14th Floor

Columbus, OH 43215

(614) 466-8831

800-282-0515 (in-state only)

Website: http://www.ag.state.oh.us

Oklahoma (filing required unless exempt)

Oklahoma Department. of Securities

Suite 860, First National Center

120 N. Robinson

Oklahoma City, OK 73102

(405) 280-7700 (voice)

(405) 280-7742 (fax)

Website: http://www.securities.ok.gov

South Carolina (filing required)

Secretary of State’s Office

P.O. Box 11350

Columbia, SC 29211

(803) 734-2169

South Dakota (filing required)

South Dakota Division of Securities

445 E. Capitol Ave.

Pierre, SD 57501

(605) 773-4823

Texas (filing required)

Secretary of State’s Office

Statutory Documents SectionP.O. Box 12887

Austin, TX 78711-2887

(512) 475-1769

Website: http://www.sos.state.tx.us/statdoc/statforms.shtml#BOAF

Utah (filing required)

Consumer Protection Division

160 East 300 South

Salt Lake City, UT 84111

(801) 530-6601

Virginia (no filing required)

Consumer Affairs Office

101 North 8th Street

Richmond, VA 23219

(804) 786-0594

(800) 451-1525 (in-state only)

Washington (filing required)

The Department of Financial Institutions

Securities Division

P.O. Box 9033

Olympia, WA 98507-9033

Voice: (360) 902- 8760

Fax (360) 902-0524

Wisconsin

Wisconsin Department of Agriculture

Trade and Consumer Protection

P.O. Box 8911

Madison, WI 53708-8911

(800) 422-7128

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