Accredited Investor

According to the SEC, an accredited invest is a person who meets one of the following criteria:

  • Earns an annual income of more than $200,000 (or $300,000 together with a spouse) for each of the last two years and expects to reasonably maintain the same level of income.-Has a net worth exceeding $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
  • Is a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Is a business in which all the equity owners are accredited investors.
  • Is a trust with total assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
  • Is an entity in which each equity owner is an accredited investor.