Who qualifies as an accredited investor?

Individuals (i.e., natural persons) may qualify as accredited investors based on wealth and income thresholds, as well as other measures of financial sophistication. How can entities qualify as accredited? Depending upon the structure of the entity or its assets, entities may qualify as an accredited investor.

How does the SEC define an accredited investor?

Simply put, the SEC defines an accredited investor through the confines of income and net worth in two ways: A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

How do I become an accredited investor?

Individuals or parties who want to be accredited investors can approach the issuer of the unregistered securities. The issuer may ask the applicant to fill out a questionnaire and provide financial documents. The required documentation may include account information, financial statements, and a balance sheet.