What is a Transfer agent?
Transfer agent manages and maintains records of securities ownership for a company. Transfer agents can also facilitate proxy voting and manage dividend/interest payments, issuances, transfers, lost shareholder searches, and much more. Most importantly, when your company converts the security you issued into common stock, preferred stock, cash, or something else, a Transfer agent is there to ensure that the conversion is smooth and compliant with applicable securities laws and regulations.
It’s important to make sure that the Transfer agent you engage is registered with the SEC. In terms of a timeline, it’s regulatory best practice to engage a Transfer agent by the end of the fiscal year (September 30) in which your campaign ended, or before any liquidity event or subsequent equity financing.