How to Start a Minority Woman-Owned Business
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How to Know if You Might Qualify as a Minority- or Woman-Owned Business
At least 51% of the organization must be owned, operated, and run by one or more women. The women who own and operate the business must be U.S. citizens. A woman must be in charge of the daily processes and operations in the company. One or more of the women owners must control the management of the organization. At least 51% of the organization must be owned, operated and run by one or more minority members. The minority owner must be a U.S. citizen. The owner must have someone who is at least 25 percent Hispanic-American, African-American, Asian-America, Native American, Pacific Islander, or native Alaskan. The minority owner must have paperwork to prove their background.
Steps to Becoming a Minority- or Woman-Owned Business
Nailing down your business idea Writing a business plan Registering your business name Choosing a legal structure for your business Registering for federal, state and local taxes Getting any necessary business licenses or permits
1. Choosing Your Preferred Organization
The National Minority Supplier Development Council (NMSDC), which offers certification as a minority business enterprise (MBE) The Small Business Administration (SBA), which offers Women Owned Small Business (WOSB) certification. The National Women Business Owners Corporation (NWBOC), which offers Women Business Enterprise (WBE) certification The Women’s Business Enterprise National Council (WBENC), which offers Women Business Enterprise (WBE) certification
2. Gathering the Necessary Documents
Fictitious business statement (also known as “doing business” as or DBA statement) Driver’s license Proof of U.S. citizenship Proof of ethnicity for owner(s) 2 years of Federal business tax returns Current financial statements Business licenses Employer Identification Number History of Business (explaining the start and history of your business, including when, where, why, with whom, and how the business was started/acquired, as well as an explanation of the primary business of the company) Professional and business license(s), if applicable Resumes of all owners, board of directors, and key management team Copy of current U.S. Passport, U.S. Birth Certificate, or Driver’s License Financial statements for the business Three years’ Federal Income Tax returns (or, for businesses less than three years old, personal federal income tax returns)
3. Starting the Certification Process
How to Apply to Become a WOSB
Apply for your D-U-N-S number from Dun & Bradstreet (D&B). It’s free to obtain. This number is used to establish your company’s D&B file, which can help potential partners and lenders learn more about your business and make more informed decisions about whether or not to work with you as a client, supplier, or partner. Set up an account with the System for Award Management (SAM). This is the official government site for contracting and more, and it’s free to register. Create your SBA Connect account. This account will make it easy to log into different SBA websites.
4. Paying the Application Fee
How Long Can it Take?
Funding Options for a Minority Woman-Owned Business
Minority Business Development Agency National Minority Supplier Development Council The USDA Rural Business Enterprise Grant Program
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