How Does a Business Entity or Trust Qualify as an Accredited Investor

To be accredited, the entity or Trust has to meet one of the following conditions:

  • ≥$5M in Assets, or 
  • Each of the beneficial owners must be accredited. 

For Trusts

To invest in a Rule 506(c) Offering that only allows verified Accredited Investors, the Trustee would have to produce documentation that the Trust meets one of the above standards. This could be in the form of a letter from the Trust’s CPA, Investment Advisor, or Attorney (someone with a license), or a third-party verification service such as EarlyIQ.com (see “Get Verified” page of our website), or VerifyInvestor.com

For a Rule 506(b) Offering that allows non-Accredited but sophisticated Investors, the Trustee would attest (usually under penalty of perjury) in the Subscription Agreement that the Trust meets one of the above conditions. 

For Other Entities

For most other types of entities, the conditions are the same. For Rule 506(c) offerings, the entity would have to produce documentation from the entity’s CPA, Investment Advisor, or Attorney (someone with a license), or a third-party verification service such as EarlyIQ.com (see “Get Verified” page of our website), or VerifyInvestor.com. For Rule 506(b) offerings, an officer, manager, GP, or other authorized person could attest to the entity’s status as Accredited or non-Accredited but sophisticated, as applicable.

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Are you ready to raise private capital?

At Syndication Attorneys LLC, we are committed to your success – book a consultation with one of our team members today!

About Syndication Attorneys

We are NOT your stereotypical law firm. We don’t believe in simply taking your money, handing you a stack of technical, often-incomprehensible legal documents and then bidding you good luck and good-bye. At Syndication Attorneys PLLC, we are committed to your success – not just with the project at hand, but your continuing success in business and investing. We are your long-term legal team.

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