Under the law, a security must be registered unless it falls under an exemption to registration. Registration can be a lengthy and detailed process. Fortunately, there are several exemptions wherein the security does not have to be registered. One exemption that I have used for independent films is the exemption under California corporations code 25102(f). This exemption is limited to no more than 35 investors with whom you have a pre-existing business or personal relationship.
This exception should be considered when a filmmaker desires to raise money from investors in California. Please see below for further details.