An accredited investor is a person or entity that is allowed to invest in securities that are not registered with the Securities and Exchange Commission (“SEC”). To be an accredited investor, an individual or entity must meet certain income and/or net worth guidelines. In essence, the interested investor needs to provide the investment issuer confirmation they qualify as an accredited investor by several methods defined by the SEC.
If you are an individual or trustee for your family trust you attest that;
- you have a net worth, individually or jointly with your spouse (exclusive of home equity) of 1 million or greater, or
- you have an annual income of $200,000 or great for last 2 years or have a joint income with your spouse of $300,000 for last 2 years or
- you or your spouse, as trustee of your family trust, qualifies as an accredited investor under options 1 or 2 above.
If you represent an entity (such as an irrevocable trust, corporation, 501c(3) or other organization you attest that;
- your entity has total assets in excess of $5,000,000, and your entity is not formed for the specific purpose of acquiring the securities offered, or
- you are an entity in which all of the equity owners are accredited investors.
For further details and recent changes you may go to the SEC’s website: https://www.sec.gov