How do you become an accredited investor?

To be considered an “accredited investor” then you must meet certain income and net worth requirements. Those are:

  • An individual who has earned $200,000 in the past two years or has a joint income with their spouse that is at least $300,000 in the past two years and that income is expected to continue into the current year.
  • An individual who has a net worth (or joint net worth with a spouse) that exceeds $1 million at the time of purchase. This excludes the value of your residence.

While there is no formal way to confirm accreditation, you should be prepared to prove your income or net worth. There are strict requirements put in place by the SEC that require that companies to verify the status of their investors. Gathering your financial information and presenting it in a quality fashion is incredibly time consuming and perhaps overwhelming. However, there is help out there. Many companies will consider a letter from an attorney that has reviewed your financial situation and presented that information in an easy-to-understand format. This can save you considerable time, not to mention stress.

If you are interested in obtaining a business attorney to review your situation, LawTrades can assist you. We have the resources to connect you to a skillet yet affordable lawyer. Reach out to us for a free consultation.