Benefits of a Woman-Owned Small Business

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You may be wondering, “Are there any tax benefits to owning my own business as a woman?” Unfortunately, while there are benefits to women owned businesses, those benefits are not executed or administered through the Internal Revenue Code. While the Code does not discriminate on the basis of gender, there are plenty of opportunities through other government agencies in which a women owned businesses could benefit, especially if they are minority owned.

To Qualify as a Woman-Owned Small Business (WOSB)

Your business must:

  • Meet small business size standard for your business’s primary North American Industry Classification System (NAICS) code and contract
  • Be at least 51% owned by women who are U.S. citizens
  • Be managed day-to-day by women
  • Have long-term decisions made by women
  • Have a woman holding the highest officer position in the company. She must work at the business full-time during normal working hours. (Although, there’s no minimum amount of time the business must be operational.)

To Qualify as an Economically Disadvantaged Women-Owned Small Business (EDWOSB)

Your business must meet all the requirements of a WOSB, and all of its owners must meet the requirements below:

  • Your personal net worth must be less than $750,000, excluding:
    • Your ownership in your business and your primary personal residence
    • Income reinvested or used to pay business taxes
    • Funds reinvested in an IRA or other retirement account
    • Transferred assets within two years to, or on behalf of immediate family member for select purposes
  • Adjusted gross income average over the last three years is $350,000 or less, excluding:
    • Income reinvested or used to pay business taxes
  • Fair market value of all your assets is $6 million or less

If you are a woman and thinking of starting your own business, we would love to set up a consultation to discuss your ideas and how we can assist you in getting started today. It’s easy! Just click the “schedule an appointment” button at the top of the page so we can chat for a few minutes!