When an LP invests through an LLC, trust, SPV, or fund, a CPA-signed accreditation letter answers whether they qualify. Business verification (KYB) answers whether the entity is real, in good standing, and beneficially owned by the people named — recorded right alongside the letter.
The CPA-signed accreditation letter is the core document. Business verification is an optional $39 add-on — free on the $5M asset-test plan — and it is live today.
Business verification looks at the entity the way a fund admin would — not to decide accreditation, but to confirm the company on the subscription agreement is genuine and understood.
An official company-registry lookup confirming the entity exists and is active and in good standing.
Identification of the people who beneficially own the entity, so you know who is really behind it.
The entity itself is screened against sanctions and PEP lists. A hit flags for review, never an auto-decline.
Review of the ownership documents — operating agreement, trust instrument, or cap table — against what the registry shows.
An LP invests through an entity. The subscription comes from an LLC, family trust, or single-deal SPV, and you want to confirm the entity — not only the person signing for it.
Fund-of-funds and layered structures. The investor is itself a fund or holding vehicle, so knowing who beneficially owns it matters before you accept the commitment.
Your fund admin asks for it. Administrators and banking partners often expect entity-level verification on file, and this gives you one record to hand over.
You want it on the same record as the letter. Rather than run the entity through a separate tool, layer KYB onto the accreditation verification so both live together.
Rule 506(c) asks you to take reasonable steps to verify each investor is accredited, and a licensed CPA's signed letter is the third-party professional evidence that answers it. Business verification does not change that determination, and it does not change which paragraph of Rule 501(a) an entity qualifies under — accreditation and business verification are separate things. What KYB adds is a record of the entity itself, captured in the same flow and noted alongside the letter and the public certificate, so an entity investor's file carries both.
Business verification is built to strengthen your own diligence, not to stand in for it. You remain responsible for your compliance program, and it gives you a cleaner set of inputs to run it on.
Business verification is a $39 add-on to an entity verification. It is included free on the $5M asset-test plan, where entity-level review is part of the work anyway. It is live and can be added today — you decide whether a given entity needs it.
When an LP invests through an LLC, trust, SPV, or fund rather than in their own name, business verification (KYB) confirms that the entity is real and understood: it looks the entity up in official company registries, checks it is in good standing, identifies the people who beneficially own it, screens the entity against sanctions and PEP lists, and reviews the ownership documents. It sits alongside the CPA-signed accreditation letter as a supporting record.
Four things: an official company-registry lookup confirming the entity exists and is in good standing; beneficial-owner identification; a sanctions and PEP screen of the entity itself; and a review of the ownership documents. It is built to strengthen your own diligence rather than replace it, and you stay responsible for your own compliance program.
No. The core deliverable is the CPA-signed accreditation letter, which is what satisfies the Rule 506(c) reasonable-steps standard. Business verification is an optional add-on that sponsors and fund admins often want when investment comes through an entity. You choose whether to include it.
It is a $39 add-on to an entity verification, and it is included free on the $5M asset-test plan. It is live and can be added today.
They answer different questions. Accreditation verification is the CPA determining, and signing a letter stating, that the investor qualifies as accredited under Rule 501(a). Business verification confirms the entity behind the investment is real, in good standing, beneficially owned by the people named, and clear of sanctions. Business verification does not change which paragraph of Rule 501(a) the entity qualifies under — the two are separate and are recorded separately.
Start with the CPA-signed accreditation letter, then layer KYB on the same record — registry, beneficial owners, and a sanctions screen on the entity itself. It is a $39 add-on, free on the $5M asset test.
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