Female business owner consults male colleague.
If your business is at least 51% woman-endemic, you can qualify for economic resource and federal contracts. — Getty Images / Fizkes

If your business is at to the lowest degree 51% woman-owned and operated, you may be eligible for certification equally a woman-owned business concern. The federal authorities aims to award a minimum of v% of all contracting dollars to women-owned businesses each yr, with certain contracts beingness set aside for woman-owned businesses that are economically disadvantaged.

By obtaining a adult female-owned business certification, you will have access to federal contracts and the economic resources that can help your visitor abound. Here's how to get certified as a woman-endemic concern.

[Read: How to Get Certified equally a Minority-Owned Business ]

Types of certifications

There are ii certification types: woman-owned small business and economically disadvantaged woman-endemic small business. The eligibility requirements for each are as follows:

Woman-owned small concern (WOSB)

To qualify as a WOSB, your business must be for-profit and meet the requirements of a small-scale business as defined by the Code of Federal Regulations. Operations must be primarily based in the Usa, although certain foreign firms may qualify under specific conditions.

Your business must besides be at to the lowest degree 51% unconditionally and directly owned past women who are U.S. citizens. The adult female or women must be the ones who manage daily operations, make long-term decisions and hold the highest officeholder positions available. They must besides work at the business full-fourth dimension during normal working hours, although there is no minimum corporeality of time for the business to be considered operational.

Economically disadvantaged woman-owned minor business concern (EDWOSB)

To qualify as an EDWOSB, your business must run into all of the above conditions of a WOSB also additional economic requirements. A business concern owner's personal net worth must be less than $750,000, and their adjusted gross income average over three years must be less than or equal to $350,000. The fair market value of all assets must be $half dozen million or less.

These financial requirements exclude equity in business and main personal residence, income reinvested or used to pay business concern taxes, and funds invested in official retirement accounts (if they cannot exist accessed until retirement).

There are two classifications: adult female-owned business organisation and economically disadvantaged woman-owned business.

How to go certified as a woman-owned business

Before your business concern is eligible to apply for federal contracts, you must apply for certification. This tin be done through either a cocky-certification or tertiary-political party certification process. Neither procedure is "better" or preferred by governing bodies; information technology entirely depends on your personal preference.

Self-certification equally a WOSB or EDWOSB is free. To do this, use direct via the U.South. Small Business Administration (SBA). You'll need an active registration in the System for Award Management, likewise equally the following documents:

  • Birth certificates, naturalization papers or unexpired passports for each adult female business organization possessor.
  • Articles of organisation/incorporation, partnership or joint venture agreements, voting agreements, and whatever amendments to these documents.
  • Issued stock certificates and stock ledger.
  • Assumed/fictitious name certificate.
  • Iii nigh recent personal tax returns including W-2's and all schedules for each woman business owner and her spouse (for EDWOSB).
  • IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (for EDWOSB).

If your business has an 8(a) certification for ownership past economically-disadvantaged individuals, and you are also applying for an EDWOSB certification, y'all may upload your 8(a) document and almanac review alphabetic character instead of the above financial statements. These federal programs employ the aforementioned criteria to determine certification eligibility.

Alternatively, yous can obtain your WOSB certification through one of four approved third-party organizations (specific requirements and associated fees will vary by organization):

  • El Paso Hispanic Chamber of Commerce
  • National Women Concern Owners Corporation
  • U.S. Women'southward Chamber of Commerce
  • Women's Business Enterprise National Quango

One time you are certified, you will demand to provide proof of your third-political party certification to the SBA by uploading your current certificate and joint venture agreement (if applicable). If yous are looking for boosted women-endemic business organization resource, take a await at our list of some of the top programs that provide assistance to women-owned businesses.

CO— aims to bring you inspiration from leading respected experts. However, earlier making whatsoever business concern decision, you should consult a professional who can advise y'all based on your private situation.

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To stay on meridian of all the news impacting your small-scale business, go here for all of our latest pocket-size business concern news and updates.

CO—is committed to helping you kickoff, run and grow your small-scale business. Learn more nigh the benefits of modest business membership in the U.Southward. Chamber of Commerce, here.

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Published September 02, 2020