How Individuals Can Qualify As Accredited Investors
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner);
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.
- Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82);
- Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company);
- Any “family client” of a “family office” that qualifies as an accredited investor;
- For investments in a private fund, “knowledgeable employees” of the fund.
How Entities Can Qualify As Accredited Investors
Depending upon the structure of the entity or its assets, entities may qualify as an accredited investor.
Entities owning investments in excess of $5 million.
The following entities with assets in excess of $5 million: corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office.
Owners As Accredited
Entities where all equity owners are accredited investors.
A bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company.