As a woman who owns a business, you may have heard that you will have advantages if you become a certified woman-owned business.
There are some requirements that need to be met, but there can be huge benefits to registering!
At CSI Accounting & Payroll, we’ve worked with small business operations for nearly 60 years. That means we’ve heard plenty of questions about women-owned businesses, including:
- Am I a woman-owned business? Am I economically disadvantaged?
- What advantages are there? Tax benefits, funding, government programs?
- How do I obtain a women-owned business certification?
What Qualifies as a Woman-Owned Business
If you’re a woman and own a business, is that enough to be a woman-owned business? Somewhat – but there are specific requirements.
The Small Business Administration (SBA) oversees the Women-Owned Small Business (WOSB) Federal Contract program. You can register as a Women-Owned Small Business (WOSB) if:
- You are a woman.
- You are a United States citizen.
- Your business is for-profit.
- You have at least 51 percent ownership of the business.
- You are involved in the business on an owner level.
- You meet the SBA’s size standards for being a small business.
You can also register as an Economically Disadvantaged Woman-Owned Small Business (EDWOSB) if you meet all of the above, plus:
- Your personal net worth is under $750,000 (with some exclusions).
- Your adjusted gross yearly income average over the past three years is under $350,000.
- The fair market value of all of your assets is under $6 million.
Often, when there are multiple owners (such as a wife and husband), the woman is made to be the majority owner because they expect to benefit from that. However, they may not know what those benefits are. Let’s talk about them!
Benefits for Woman-Owned Businesses
Most people want to know about financial benefits, like tax credits – so we’ll start by pointing out that there are no tax benefits for women-owned businesses, even if you get certified.
The only benefit you can claim without needing a certification is to position yourself as a woman-owned business. This may personally incentivize people to work with you since women are considered minority business owners.
However, there are still some advantages to getting that certification:
- More opportunities for government contracts
- More opportunities to work with businesses
- Specific support for loan opportunities
Government Contracts
The Women-Owned Small Businesses (WOSB) Federal Contract program can help you compete for federal contracts.
Specifically, the federal government sets aside certain contracts (in some industries where WOSBs are underrepresented) for participants in this program – and even some contracts specifically for EDWOSBs.
See if you qualify for the WOSB Federal Contract program here.
Business Diversity Programs
Many businesses of all sizes have supplier diversity programs. Being a certified WOSB can help you gain access to these programs.
They may pledge that a certain percentage of the vendors they work with must be diverse, certified businesses, which may include woman-owned businesses.
Support for Funding Opportunities
It can be challenging to secure funding, but becoming certified can give you more opportunities. Some of the best funding opportunities come from the SBA.
While the SBA’s loan programs are not specific to WOSBs, they do offer specific support for WOSBs through their Office of Women’s Business Ownership (OWBO).
Loans are good, but grants can be even better! Discover some ongoing small business grants here.
How to Get Certified as a Woman-Owned Business
Becoming certified as a woman-owned business provides some pretty big benefits. Plus, if the application process gets too overwhelming, you can find professional assistance for a reasonable fee – right here at CSI!
Jo Rawald, our partner in this area, offers a one-year CertifyHER program to guide you through the certification process and help you leverage your woman-owned status for business growth.
While many other advisors charge upwards of $5,000 just to get certified, Jo charges a lower fee for a more in-depth, ongoing service. The CertifyHER program includes:
- Assisting with the application. This includes finding loopholes and answering unique questions.
- Submitting the application to the certifying agency. This can take the agency between two weeks and six months to approve. They need to validate the paperwork and visit your business.
- Ongoing 1-1 sessions for finding opportunities. This includes searching for grants, government contracts, and partnership diversity programs once you’re certified. These one-on-one coaching sessions and resources are invaluable for getting more sales!
Interested in learning more? Check out her woman-owned business certifying services here!
Get Certified & Still Get Tax Benefits!
While there are no tax benefits for being a certified woman-owned business, a monthly accountant can help you by working on your tax strategy year-round.
Now that you know about the requirements to be a woman-owned business, what advantages there are, and how you can register, are you ready to check out monthly accounting services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about monthly accounting by clicking the image below:
