The actual regulations are that the company owes you slightly more in terms of unaudited financials as an unaccredited investor, and there's a maximum total (so

The actual regulations are that the company owes you slightly more in terms of unaudited financials as an unaccredited investor, and there's a maximum total (something like 20 or 30?) number of unaccredited investors they can have. Companies try to avoid it -- who wants one extra burden as a startup, even a small burden? But it's not as onerous as you might think.