Accredited investor
An investor meeting SEC criteria (income, net worth, or qualifications) for participating in private offerings.
Definition
Accredited investor is an SEC-defined category for participating in Regulation D private offerings. Income test: $200K individual / $300K joint for 2 years. Net worth: $1M excluding primary residence. Qualifications: Series 7/65/82 licenses.
Context
Affects who can invest in your Delaware LLC private offerings under Reg D.
Example
A Delaware LLC raises $2M from private investors under Reg D 506(b). All investors must be accredited (or limited number of non-accredited with disclosure).
Common pitfalls
- Accreditation verification is required for Rule 506(c) offerings.
- Foreign investors typically use Reg S, not Reg D.