ToddL99
Expert Alumni

Business & farm

There are no tax forms required to report an angel investor's investment in a company.

 

Typically, an angel investor receives some form of equity (stock) or a convertible debt instrument (e.g. a bond) in return for a capital contribution (cash). Neither of these instruments requires any tax reporting forms.

 

If either of these instruments result in the payment of dividends or interest, they would be reported on 1099-DIV and 1099-INT, respectively.

 

An angel investor (also known as a business angel, informal investorangel funder, private investor, or seed investor) is an individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

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