Transfer Agent For Cap Table Management Platforms

Do I need a transfer agent to manage my cap table?

You need a SEC-registered transfer agent if you:

1. have more than 2,000 security holders or more than 500 non-accredited security holders,
2. and have more than $10 million in total assets.

If a stakeholder holds only stock options, they do not count against the holder limit because securities in an employee compensation plan are excluded.

Based on our experience in working with tens of thousands of private LTSE Equity customers, they haven't needed to pay a premium for registered TA services that are not warranted. For example, if you raised $1 million in equity crowdfunding from 500 investors using a service like Wefunder, you do not need a transfer agent.

More on transfer agents

A transfer agent generally performs the following services:

1. Issue, cancel and transfer securities (including monitoring for unauthorized issuances)
2. Track, record, maintain and update an official record for each security issued by a company
3. Facilitate stakeholder communications, and
4. Make dividend, principal, interest and other distributions to stakeholders