Is it possible to be a “silent” investor (party A) with a friend who’s an accredited investor (party B)investing in a company? So if B is investing $50k in a company, and A wants to give B $25k of that investment, is this possible with an agreement between A and B, where they’re responsible for their own portion of taxes?

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B is selling A securities in your example. Not clear that transaction qualifies as exempt from registration requirements. Potentially also issues around acquiring securities with present intent to resell, but I’m an M&A person so just know enough to issue spot.

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The answer is no. If there’s an accreditation/licensure process required, and you’re trying to come up with creative ways to get around those requirements, it’s liable to blow up in your face. Because if such maneuvers were allowed, it would weaken the accreditation process

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Seems sketch. Maybe loan him the $25k and have the interest rate mirror whatever rate of return the investment gets?

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Too cute. Unless the interest rate is fixed and not dependent on the investment, this wouldn’t pass muster.

https://carta.com/investors/special-purpose-vehicles-spv-demo/?utm_source=adwords&utm_medium=paid-search&utm_campaign=12317644522&utm_term=%2Bwhat%20%2Bis%20%2Ba%20%2Bspv&utm_keyword=kwd-1173950461900&_bt=497994056313&_bk=%2Bwhat%20%2Bis%20%2Ba%20%2Bspv&_bm=b&_bn=g&_bg=117692860957&gclid=CjwKCAjwur-SBhB6EiwA5sKtjsCTJq7w9M4XuLuU7c6twtWvWRCKwz4E20Si_8qHgMY2DvYP_ZvNzhoCL0EQAvD_BwE

What is this for?

What kind of investment is this?

Yes, and I agree

Form an LLC then invest together.

Yes, unfortunately

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