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

If your concern is at least 51% woman-endemic and operated, y'all may exist eligible for certification equally a woman-owned business concern. The federal authorities aims to award a minimum of 5% of all contracting dollars to women-owned businesses each year, with certain contracts being set up bated for woman-endemic businesses that are economically disadvantaged.

By obtaining a woman-owned business certification, yous volition have access to federal contracts and the economic resources that can help your visitor grow. Here's how to get certified equally a woman-endemic business.

[Read: How to Go Certified as a Minority-Endemic Business concern ]

Types of certifications

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

Adult female-owned pocket-size business (WOSB)

To qualify as a WOSB, your business must be for-profit and come across the requirements of a pocket-size business as defined past the Code of Federal Regulations. Operations must be primarily based in the U.s.a., although certain foreign firms may authorize nether specific conditions.

Your business organization must also exist at to the lowest degree 51% unconditionally and direct owned past women who are U.S. citizens. The woman or women must be the ones who manage daily operations, make long-term decisions and hold the highest officer positions bachelor. They must as well work at the business full-time during normal working hours, although at that place is no minimum amount of fourth dimension for the business to be considered operational.

Economically disadvantaged woman-owned small concern (EDWOSB)

To authorize as an EDWOSB, your business must meet all of the to a higher place weather condition of a WOSB too boosted economic requirements. A business organization 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 exist $6 meg or less.

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

There are ii classifications: woman-owned business and economically disadvantaged adult female-endemic business.

How to get certified as a adult female-owned business

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

Cocky-certification equally a WOSB or EDWOSB is free. To do this, apply direct via the U.S. Small Business concern Administration (SBA). You lot'll need an active registration in the Organization for Honor Management, as well equally the following documents:

  • Nativity certificates, naturalization papers or unexpired passports for each woman business owner.
  • Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and whatever amendments to these documents.
  • Issued stock certificates and stock ledger.
  • Causeless/fictitious name certificate.
  • Three most recent personal revenue enhancement returns including W-ii's and all schedules for each woman business owner and her spouse (for EDWOSB).
  • IRS Course 4506-T, Request for Revenue enhancement Transcript for each adult female business owner and her spouse (for EDWOSB).

If your business organisation has an 8(a) certification for ownership by economically-disadvantaged individuals, and you lot are also applying for an EDWOSB certification, you may upload your viii(a) document and annual review letter of the alphabet instead of the above financial statements. These federal programs utilize the same criteria to determine certification eligibility.

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

  • El Paso Hispanic Bedroom of Commerce
  • National Women Business Owners Corporation
  • U.Southward. Women's Chamber of Commerce
  • Women'south Business organization Enterprise National Council

In one case you are certified, you will demand to provide proof of your tertiary-political party certification to the SBA by uploading your current certificate and joint venture understanding (if applicative). If y'all are looking for additional women-endemic business resource, take a look at our list of some of the top programs that provide help to women-owned businesses.

CO— aims to bring you inspiration from leading respected experts. However, before making any business conclusion, you should consult a professional who tin can advise y'all based on your private situation.

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CO—is committed to helping yous outset, run and grow your small business. Learn more than about the benefits of small business membership in the U.Due south. Chamber of Commerce, hither.

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Published September 02, 2020