TYPES OF ENTITIES

Please select one of the following entity types to learn how that type of entity can qualify:

A Business is any sort of legal entity formed for the purposes of making a profit. This can include a corporation, partnership, limited liability company, etc. For our purposes here, it does not include nonprofit organizations.

A Nonprofit Organization is a legally formed business entity that has obtained IRS tax-exemption status.

A Trust is a legally created document that acts in several ways like a legal entity, acting on behalf of another person, persons, or entity/entities. A trust establishes a trustee who is responsible for administrative decisions and a beneficiary on whose behalf the trustee acts.

A Bank is a financial institution licensed and authorized to receive deposits, clear checks, make loans, and otherwise act as a financial intermediary.

An Insurance Company offers policies that provide protection in the form of some sort of compensation, financial or otherwise, in the event of a loss, damage, injury, or hardship in exchange for regular premium payments.

A Registered Investment Company refers to a business entity that is registered with the SEC and primarily engages in investing and/or trading securities.

An ERISA Plan is any retirement plan operating under the guidelines of the Employee Retirement Income Security Act of 1974. Examples include a 401(k), 403(b), SEP, ESOP, or pension.

An IRA, Roth IRA, or public employee plan does not fall under this category. However, you can use assets from these plans to qualify as a person.

Qualifying as a For-Profit Business

A Business is any sort of legal entity formed for the purposes of making a profit. This can include a corporation, partnership, limited liability company, etc. For our purposes here, it does not include nonprofit organizations. In order for a business to qualify as being accredited all members who have an equity interest must themselves be personally accredited and provide evidence thereof.

If your for-profit business qualifies as accredited, the following items must be submitted:

  1. A copy of the state-issued formation documents
  2. A copy of the operating agreement that specifies who may make decisions on behalf of the entity
  3. Evidence of who is an equity owner in the business
  4. A company resolution (such as would be documented in board meeting minutes) authorizing the investment
  5. Documentation that all equity owners in the business are personally accredited at the individual level

Qualifying as a Non-Profit Business

A Nonprofit Organization is a legally formed business entity that has obtained IRS tax-exemption status. In order for a nonprofit entity to qualify as accredited the organization must be an IRS approved tax-exempt entity with assets over $5 million.

If your nonprofit qualifies as accredited, the following items must be submitted:

  1. A copy of the state-issued formation documents
  2. A copy of the operating agreement that specifies who may make decisions on behalf of the entity
  3. Evidence of who is an equity owner in the business
  4. A company resolution (such as would be documented in board meeting minutes) authorizing the investment
  5. Documentation in the form of bank statements or other financial statements listing all of the nonprofit’s assets and liabilities and showing a positive balance of over $5 million

Qualifying as a Trust

A Trust is a legally created document that acts in several ways like a legal entity, acting on behalf of another person, persons, or entity/entities. A trust establishes a trustee who is responsible for administrative decisions and a beneficiary on whose behalf the trustee acts.

In order for a trust to qualify as being accredited it must have assets over $5 million and not have been formed with the specific intent of making this specific investment.

If your trust qualifies as accredited, the following items must be submitted:

  1. A copy of the trust agreement
  2. A document signed by the trustee(s) authorizing the investment
  3. Documentation in the form of bank statements or other financial statements listing all of the trust’s assets and liabilities and showing a positive balance over $5 million
  4. If not referenced in the trust agreement, an additional signed statement by the grantor (a.k.a. settlor, maker, or trustor) indicating that the trust was not formed with the specific intent of making this specific investment.

Qualifying as an ERISA Plan

An ERISA Plan is any retirement plan operating under the guidelines of the Employee Retirement Income Security Act of 1974. Examples include a 401(k), 403(b), SEP, ESOP, or pension. An IRA, Roth IRA, or public employee plan does not fall under this category.

There are two ways to verify the accreditation status of an ERISA Plan, depending on how the plan is managed.

Does a bank, insurance company, or an SEC registered investment advisor make the investment decisions on behalf of this plan?

Professionally Managed ERISA Plans

If the investment decisions made by your ERISA plan are made by a bank, insurance company, or an SEC registered investment advisor, that particular party must sign the Accreditation Qualification form. Additionally, documentation of your ownership interest in the plan must also be provided.

Non-Professionally Managed ERISA Plans

If the investment decisions made by your ERISA plan are not made by a bank, insurance company, or an SEC registered investment advisor, then documentation in the form of bank statements, brokerage accounts, or other financial statements listing all of the trust’s assets and liabilities and showing a positive balance over $5 million is required.

Additionally, documentation of your ownership interest in the plan must also be provided.

Qualifying as a Bank, Insurance Company, or Registered Investment Company

A Bank is a financial institution licensed and authorized to receive deposits, clear checks, make loans, and otherwise act as a financial intermediary.

An Insurance Company offers policies that provide protection in the form of some sort of compensation, financial or otherwise, in the event of a loss, damage, injury, or hardship in exchange for regular premium payments.

A Registered Investment Company refers to a business entity that is registered with the SEC and primarily engaged in investing and/or trading securities.

If you are seeking to qualify as one of the above, only the following items must be submitted:

  1. Documentation proving your designation as such
  2. A document signed by an appropriately designated person authorizing the investment

There is no need to provide any documentation or evidence of net worth, assets, income, or otherwise.