Accredited investor check
Enter a person's income, net worth, and licenses. See which SEC tests for an accredited investor pass, and why.
Check
Are you an accredited investor?
Most startup rounds sell only to accredited investors. Enter a person's numbers and see which SEC tests pass.
Income test
Net worth test
Everything you own except your home.
Car loans, cards, and other loans.
- Income test
- Fail
- More than $200K each year
- Net worth test
- Fail
- $780K without the home
- License test
- Fail
- Result
- Not accredited
The income was not more than $200K two years ago. The test asks for more than $200K in each of the two prior years, and the same expectation for this year.
With the home, the net worth is $1.08M. But the rule does not count the home, so the net worth for the test is only $780K, not more than $1M.
No test passes. Most startups do not take money from this person, because a sale to a non-accredited investor brings more rules and more documents.