What is an “Accredited" Investor? | InvestReady

What is an “Accredited" Investor?

The full definition of an accredited investor according to the SEC can be found at http://www.sec.gov/answers/accred.htm. In short, for an investor to be considered accredited, he or she must either:

  • For Individuals:
    • Have had an annual income of $200,000 if filing individually or $300,000 if filing jointly for each of the two most recent years, and a reasonable expectation to maintain that income for the following year, or
    • Have a net worth of $1,000,000, not including his or her primary residence.
  • For entities: 
    • Is a Trust or Entity with assets of $5,000,000 or 
    • Is a Trust or Entity solely owned by accredited investors (there are a few other definitions but these are the most common)