I don't think you are really describing the investment type correctly: Angels (qualified investors) typically buy a large percentage of a startup. What you are describing is a Limited Liability Partnership. Investors could buy LP units for $5000, and you would be the managing General Partner. I don't think the SEC requires LP buyers to be qualified investors. I wasn't qualified when I bought some units. I think lots of businesses operate in this way. You need to talk to a local business lawyer. I think you could set this up pretty inexpensively.