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What are the steps to take a company public?

Q: What are the steps in a direct listing?

Engage an adviser to plan the path and assemble the team: securities lawyer, PCAOB-registered auditor, transfer agent and market maker. Raise capital from your network through a private placement, typically $500,000 to $2 million from about 50 people. Even a company that doesn't need the money needs the shareholders. Prepare the accounting so the financial statements are ready for audit. Audit two years of financial statements, or every period since incorporation for a newer company. Draft the registration statement at the same time as the accounting and audit. File with the SEC and work through its comments until the registration is effective. Get quoted. A market maker files the Form 211 with FINRA, and the company applies to OTCQB.

In a direct listing, the steps are: engage an adviser, raise capital from your network, prepare and audit the financial statements, file a registration statement with the SEC, clear its comments, and have a market maker get the stock quoted. The whole process typically takes about ten months, with the raise, accounting, audit and drafting running at the same time.

Joel Arberman, Meraki Partners · Reviewed October 2026. Based on 17 companies taken public since 1999: 11 by direct listing, 4 by reverse merger and 2 by IPO.

What are the steps in a direct listing?

Engage an adviser to plan the path and assemble the team: securities lawyer, PCAOB-registered auditor, transfer agent and market maker.
Raise capital from your network through a private placement, typically $500,000 to $2 million from about 50 people. Even a company that doesn't need the money needs the shareholders.
Prepare the accounting so the financial statements are ready for audit.
Audit two years of financial statements, or every period since incorporation for a newer company.
Draft the registration statement at the same time as the accounting and audit.
File with the SEC and work through its comments until the registration is effective.
Get quoted. A market maker files the Form 211 with FINRA, and the company applies to OTCQB.

How are the steps different in an IPO?

An IPO adds an underwriter, which sells shares to its investors and usually charges 6% to 8% of the raise plus expenses and warrants. A US IPO on Nasdaq or the NYSE generally needs a raise of $15 million or more, and the company must meet the exchange's listing standards, such as Nasdaq's minimum of 300 round-lot shareholders and a $4 bid price. The audit and registration statement can be prepared before the underwriter commits; from commitment, SEC review can take three to four months. See IPO consulting.

How are the steps different in a reverse merger?

The private company merges into a company that is already public, so there is no Form 211 step. The extra steps are finding a clean shell and checking it carefully: who was involved, what they did, and any liabilities or contingent liabilities. A decent shell typically costs $300,000 to $400,000, and its shareholders keep equity. See reverse mergers.

What has to be fixed before starting?

The company should be a C corporation. Past raises must have been done with the required federal and state filings, and SAFEs or notes should convert into a fixed number of shares when the registration statement is filed. We recommend a board with at least three independent directors.

What happens after the company is public?

Quarterly reports on Form 10-Q and an annual report on Form 10-K, filed on time.
Current reports on Form 8-K for major events such as acquisitions or leadership changes.
OTCQB's annual certification and fee, and regular, honest communication with shareholders.

See the first 100 days.

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