There’s a genuine need to diversify business. Women and minority-owned businesses tend to not get as much of a spotlight or consideration, so in the past few years, the certification has become available that opens up doors for these types of organizations. If you’re considering getting certified, let’s figure out what the tax benefits for women-owned business are and how certification can help you.
It’s important to note that I am not a certified tax professional, so talking to your tax accountant or financial advisor is going to be your best bet when it comes to finding the appropriate tax benefits for women owned-business. Likewise, accessing other benefits are best obtained through the appropriate authorities and experts.
What Qualifies as a Woman-Owned Business?
There are two types of certifications that are available to women-owned businesses, but they need to meet specific criteria to be considered.
The two certifications are the Women’s Business Enterprise certification and the Women-Owned Small Business Certification. Neither requires that a woman be the sole owner of the business, but a woman does need to control over 51 percent of it, and she must be a US Citizen.
Certification does also cost money, the amount depends on what you pursue. But there are some serious benefits to consider when it comes to becoming certified.
What Are The Tax Benefits for Woman-Owned Business?
When it comes to figuring out the tax benefits for women-owned business, there are a few different things to consider. First of all, there are benefits to the tax liabilities for the actual business itself when it comes to projects that are funded through state or federal grants. Likewise, for loans when the supplier you’re using is a woman-owned business.
As far as the incentives part of tax benefits for women-owned business , some states might have them. But not all do. However, there are incentives for those that do business with women or minority-owned businesses, which could help you get additional customers that you might not have access to otherwise.
What Other Benefits Are There?
While the tax benefits aren’t for women-owned business aren’t exactly abundant when it comes to incentives straight across the board, there are a number of other relevant benefits, including:
- A bigger prospective client base because of the benefits that they get when they work for you
- It gives you a differentiating factor which is great when it comes to marketing
- Access to contracts set aside for women or minority-owned businesses, this is sometimes the case for federal and state government work
- Access to additional sources of funding that are earmarked for these kinds of businesses
If you do have a women-owned business and you could see some of these benefits working in your favor, it might be time to think about getting certified. As, to access most of these benefits, you do need to have actual certification.
Do you have experience with or running a women-owned business? Share it in the comments below!
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Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!