Do I have play an active role in the enterprise in which I invest?

A: Yes, although this requirement is often less onerous then it appears. The general rule, for all investment based cases, is that to qualify, an investor must maintain more than a purely passive role in the new enterprise upon which the petition is based. The regulations require that an investor be involved in the management of the business either through policy formulation or through the day-to-day managerial control of the commercial enterprise. One way to satisfy this requirement is for an individual to be acting as a corporate officer or board member for example.