

Ask HN: Possible loophole for angel investing net worth restriction? - johnrob

In order to be an accredited angel investor, you either need to have a minimum salary (250K/yr?) or a minimum total net worth (1 MM?).<p>Question - what if you incorporate a company, and use that company to make investments?  Would that be sufficient to bypass the restrictions?<p>I'm not necessarily recommending that anyone actually do this, I'm just curious whether it would be legal.
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Tangurena
Those numbers come from the SEC.

<http://en.wikipedia.org/wiki/Accredited_investor>

<http://www.sec.gov/answers/accred.htm>

If you want to incorporate a company in order to make such investments, then
you're going to have to register with the SEC. The phrase that comes to mind
immediately after "OMG! NO!" is "you'll be sorry!"

<http://en.wikipedia.org/wiki/Investment_Company_Act_of_1940>

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falsestprophet
No. A business can only be an accredited investor when all of the owners are
accredited investors themselves.

