Accredited Angel Investor Forms

Accredited Angels Investors who make a qualified investment (Equity / SAFE) into an approved Kansas Qualifying Company may be eligible to receive a transferable Kansas Income Tax Credit for their investment.

Investors must register each calendar year. Registrations expire on 12/31 each year

Credit limits:

• Up to 50% of the qualifying investment
• No more than $100,000 in tax credit can be issued to an investor per company per year
• No more than $350,000 in tax credit per calendar year.
• Credits can only be issued to a natural person they can not be issued to a permitted entity

Investor Types

Angel Investor – an accredited investor who is a natural person or an owner of a permitted entity investor, who is of high net worth, as defined in 17 C.F.R. § 230.501(a) and who seeks high returns through private investments in start-up companies and may seek active involvement in business, such as consulting and mentoring the entrepreneur. 

• Investment through Individual (Natural Person) Investor:
  • An Investor Summary table submitted by Qualified Kansas Business
  • Include for each investor — name, amount of investment, and amount of tax credits requested.
  • Copy of cleared check/wire from investor into Qualified Kansas Business.
  • Copy of subscription/purchase agreement, signed by company and investor.

Permitted Entity Investor – (A) any revocable trust, general partnership, limited partnership, corporation that has in effect a valid election to be taxed as an S corporation under the United States internal revenue code, or a limited liability company that has elected to be taxed as a partnership under the United States internal revenue code and (B) that was established and is operated for the sole purpose of making investments in other entities 

• Investment through a qualified Permitted Entity Investor:

Note: Tax credits will be issued only to individual (natural persons) Owners of a Permitted Entity. ALL owners of the permitted entity must register as an Accredited Angel Investor. Investment must be directly from Permitted Entity to Qualified Kansas Business. Investment through multiple Permitted Entities (e.g. LLC-1 to LLC-2 to Qualified Kansas business or Trust to LLC to Qualified Kansas Business) will not be eligible for tax credits.

• Copy of the Permitted Entity’s operating agreement documenting that it is operated for the sole purpose of making investments in other entities.
• Copy of the capitalization table of the Permitted Entity.
• Copy of the individual investor’s check/wire into the Permitted Entity.
• Copy of the Permitted Entity’s cleared check/wire into the Qualified Kansas Business.
• All Owners of the permitted entity must register as an accredited investor
• If a Trust, it must be Revocable; all benefactors must be listed with their ownership percentages, a Trustee is not necessarily a benefactor; the Trust must have greater than $5 Million in assets.

Investors who are not eligible for Tax Credits:

A person who serves in the business as a/an:

• Executive
• Officer
• Employee
• Vendor
• Independent Contractor