What If I Hired A Military Veteran
We strongly believe that veterans are a valuable asset to any business. They are dedicated, tenacious, hardworking, and have skills from the field that translate directly into building a business. They make great entrepreneurs, too. If youve hired a Veteran recently, you could qualify for tax credits, according to Military.com.
The Hire Heroes Act that came out in 2011 applies to businesses who hire eligible veterans by providing a Work Opportunity Tax Credit . Eligible veterans include short-term and long-term unemployed veterans, veterans with disabilities connected to service, and long-term unemployed veterans with disabilities connected to service.
See also: Business Taxes: Everything You Need to Know
You Might Be Able To Take Advantage Of The Cash Method
The cash method is a way of determining income that is relatively simple- when you get money from an invoice, you mark it down as income for the month you received it. When you make a payment, you mark that down as a deduction for the month you sent the money. Easy, right?
However, there are many restrictions on what kind of corporations and businesses can use the cash method. If you maintain inventory, have receipts over $5 million, have a C-corporation or partner with a C-Corporation that has receipts of over $5 million, you could not use the cash method in previous years. Instead, you had to use the accrual method, which involved some complicated bookkeeping. Income is recognized based on the earliest of when it was either earned, due or received, while expenses are only recognized when the liability is fixed and determined to the best accuracy possible and after the economic performance has occurred.
Basically, if you invoiced a customer in March and she paid in June, the income would be counted for March. If you had to buy a new computer and received the invoice in March, but paid in June, then the expense is marked down for the month you received the invoice. Starting in the 2018 tax year, all businesses with less than $25 million in receipts in the three prior tax years, even if they have inventory, will be able to make use of the cash method.
Top 10 Benefits Available For Veteran
If youâre a veteran and you own a business, there are some perks that youâre privy to that you may be unaware of. Not only that, but small businesses are the entire backbone of our economy and there are more than 2.52 million of them that are majority veteran-owned. Because veterans have served their country, the government feels it is only fair to recognize their sacrifices and service by helping them access the resources that they need and providing them with plenty of opportunities and benefits along the way.
The caveat is that you have to register as a veteran-owned business. Also known as a VSOB, this option is available through the Small Business Administration. The biggest qualification is that 51% of the business needs to be operated and owned by a veteran. Of course, you also have to fall within the SBAâs qualification guidelines as a small business.
This includes limits on the amount of revenue you can earn, as well as the number of employees you can have and other factors. After youâve registered as a proper VOSB, you will be able to find government contracts, funding, and other benefits that are only available to small businesses owned by veterans.
In the list below, weâll look at the top 10 benefits that should be on your listto cash in on when you are looking to maximize your position as a VOSB.
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Limited Government Contract Opportunities
If you own the company then it would most likely qualify as a service disabled veteran-owned small business entity. However, many agencies within the federal government do not routinely make contract set-asides for SDVOSB companies. Acting as the prime contractor, such distinctions may only net you another 5%-7% of new business opportunities .
The rest of the contract set-asides would be reserved for other small business categories etc.). If the contracts are small business set-asides, your son’s company would already qualify for participation as prime contractor, and having SDVOSB would not hold dramatically better chances. While it is true that state and local governments may expand their contract opportunities for SDVOSB set-asides, they will not be significantly higher than the local small business reserves.
Advantages Of Running A Veteran
byDecember 12, 2019, 2:35 pm18.6k Views
The United States offers a variety of benefits for active and retired veterans and their families in gratitude for the dedication and service they have offered to our county. What many dont know, however, is that there are a multitude of advantages available to those who would like to continue serving their county and communities by owning a business as well. We teamed up with Wendy Klug at the Veterans Business Outreach Center of the Dakotas to highlight some of the key resources that veteran business owners can utilize as they work to serve their community as entrepreneurs:
1. Your Skillset
The military is an incubator of some of the most important characteristics of a small business owner, many of which take nonveterans years of experience to develop. Dont forget that the skills you acquired throughout your service oftentimes speak louder than anything on paper in the eyes of banks.
2. Government Contracts
Government contacts the federal government offers opportunities for a certain percentage of all federal contracting dollars for veteran status, disabled status, and women-owned businesses. By identifying as any of these types, you have access to take a dip in the contracting world.
3. Grow With Google
4. SBA Loans
5. Franchising Benefits
6. Tax Incentives
7. Veteran Focused Training Workshops
8. Veterans Small Business Week
9. Office of Veterans Business Development
10. Acquire Surplus
Also Check: What Age Can You Get Medicare Benefits
What Our Clients Have To Say
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Home Bank of California allowed us to survive through the pandemic while retaining all of our employees. Then, when the owner was ready to retire, Home Bank of California stepped up and was instrumental in facilitating the transition of ownership for us. Their efforts allowed Diving Unlimited International to stay in San Diego and operate with our philosophy of employees first. Home Bank of California gave us the answers and service when the big banks would not. Their team provides service that is second to none. We are truly grateful for the relationship we have developed and look forward to the future with Home Bank of California as our partner!
– Charles Schultz, COO | Dan Drake, CEOOwnersDiving Unlimited International, Inc.
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From start to finish, my experience with Home Bank of California was smooth. I truly felt like Theo Daniels and the whole team took the time to understand my business needs, working closely with me every step of the way to reach my desired outcome. Their staff and services are attentive, professional, and highly personalized. As a business owner myself, these qualities are not only deeply important in terms of client relationships, but they are also greatly appreciated when navigating any banking process. I would recommend Home Bank of California to anyone exploring financial solution providers.
– Armando Anselmo
Veterans Business Outreach Center Program
This is an initiative thatâs sponsored by the Office of Veterans Business Development. It features success stories, along with mentorship and training, business plan workshops, assessments, and so much more. Eligible veterans will be able to engage in this program around the country, no matter where they are located, by contacting their nearest VBOC. This program ensures that people have the skills and tools to manage and run a business effectively to maximize their chances of success as a veteran business owner.
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Why Get Certified As A Veteran
There are two main reasons to get certified as a veteran-owned small business.
1. Ability to bid on federal contracts
First, if you’re interested in bidding on government work, getting certified can make you eligible for set-aside contracts. These are specific contracts that are only open to bids from certified veteran-owned businesses.
Currently, the Department of Veteran’s Affairs offers set-aside contracts for both certified Veteran-Owned Small Businesses and Service-Disabled Veteran-Owned Small Businesses . The rest of the federal government has 3% of all contracts set aside specifically for SDVOSBs.
2. More private-sector business
Even if your business doesn’t target federal contracts, getting certified can give you an advantage in the corporate and private world. Many companies maintain a goal for purchasing from veteran-owned businesses, and two-thirds of citizens prefer to buy from veterans according to BuyVeteran.com.
Earned Income Tax Credit
Many Veterans are eligible for various tax credits including the Earned Income Tax Credit, a refundable federal income tax credit for low- to moderate-income workers and their families. Roughly two million Veterans and military households receive the EITC, the refundable component of the Child Tax Credit or both, according to Center on Budget and Policy Priorities. The credits provide a tax break for eligible service members, allowing them to keep more of what they’ve earned and build a financial cushion for unexpected emergencies. The Tax Credits for Working Families organization produced a video sharing how tax credits are a vital resource for many who have served our country.
Read Also: Opportunity Zones Tax Benefits Explained
Business And Management Disagreements
It is very common for parents and their children to disagree about the management and decision-making within a family-run business. At this moment, your son makes all the decisions. However, if you assume ownership of the company, then your son may feel disenfranchised from the decision-making process in his own company. Thus, it is supremely important to have a binding and written process for all decision-making going forward. Further, the process and dispute resolution must be worked-out and agreed upon in writing before the ownership transfer.
Does The Va Offer Business Loans
The VA does not lend money for business purposes nor for any other reason. There are no grants for us veterans despite the numerous websites and other misinformation out there. The real skinny on getting a business loan. Unless you have friends or family who can lend you money, you most likely will have to go to a commercial bank to borrow funds.
Read Also: How To Claim Retirement Benefits
Other Veteran Business Resources
There are plenty of other government and non-government programs that can help veteran-owned businesses. Some are national programs, some are very localized, and some may offer options in-between.
For example, a state-run veteran business assistance program may or may not require the veteran to be a state resident or to be a state resident for a minimum amount of time.
Other programs, such as Women Veterans Igniting the Spirit of Entrepreneurship, may offer assistance for those who qualify as long as they have the ability to attend workshops, classes, or other types of programs in-person.
The WVISE training program was created to help veterans and military families learn how to succeed at entrepreneurship and small business management funded with help from the SBA and various philanthropic agencies, this program is run on a local level by the Institute for Veterans and Military Families at Syracuse University.
The program runs in three phases including a two-week online course, an in-person training event, and mentorship opportunities and operates in multiple locations.
Another good example of a program offered on the local level but one that could help a veteran willing to travel for the in-residence portion of the program is offered by the Riata Center for Entrepreneurship at the Spears School of Business at Oklahoma State University .
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News
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Rosen Moran Lawson Re
Bicameral Bill Would Deliver New Tax Credit to Help Veterans Starting Small Businesses in Underserved Communities With Startup Costs
WASHINGTON, D.C. Today, U.S. Senators Jacky Rosen and Jerry Moran re-introduced their bipartisan Veterans Jobs Opportunity Act to create a new startup tax credit to help veterans who establish small businesses in underserved communities. This commonsense bill would provide veterans starting a small business with a 15% tax credit on the first $50,000 of the startup costs.Congressman Al Lawson has introduced companion legislation in the U.S. House of Representatives.
As our veterans transition back into the civilian workforce, we owe it to them to provide the resources and support they need to succeed, said Senator Rosen. This bipartisan bill would deliver tax cuts to Americas heroes working to overcome startup challenges to launch their own small businesses, and it would help create jobs and revitalize underserved communities in Nevada and across the country in the process.
Supporting veteran-owned small businesses bolsters local economies across the country and the communities that benefit from these initiatives, said Senator Moran. These businesses enhance our national economy, and this bill would provide a commonsense solution to provide our nations heroes with greater support to pursue their entrepreneurial goals following their military service while also benefiting the communities they return home to.
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Priority For Va Contracts
There is one federal government agency that sets aside almost all its contracts for service disabled veteran-owned small business . That is the Department of Veterans Affairs . The Department of Veterans Affairs has special authority for Service-Disabled Veteran-Owned Small Business and Veteran-Owned Small Business set-aside and sole source contracts.
Public Law 109-461 entitled “Veterans Benefits, Health Care, and Information Technology Act of 2006” provides VA with unique authority for contracting with SDVOSB and VOSB. A new procurement hierarchy within VA for open market procurements was created which places our highest priority with SDVOB followed by VOSB.
If your company had an SDVOSB Certification, and your company was in a line-of-business NAICS code that was highly sought-after by the VA, then having this certification would dramatically improve your chances of competing and capturing such contracts. There are many small businesses that cater their entire lives towards capturing VA contracts as their single best customer. Thus, you should investigate at what the VA is procuring, and decide if your company offers that type of goods and services.
Benefits Of A Veteran
A recent survey shows that 70 percent of Americans would prefer to do business with a veteran-owned business. Further, the same survey revealed that 95 percent of American consumers said they feel a sense of trust and gratitude towards veterans.
With San Diego being a central location for every branch of the military, the opportunities for entrepreneurs are huge! Skilled, motivated and passionate individuals coming out of military service bring with them a keen sense of leadership, dedication, and ambition that results in successful business opportunities.
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Certify Your Business As A Washington Veteran Owned Business
Washington State has a certification for Veterans and Servicemembers. Certification is free and requires only basic veteran discharge status and business information to complete.
WDVA and WEBS have teamed up to streamline the registration and certification process for vendors who want to do business with Washington State agencies or municipalities.
First register your business in WEBS then send in your certification documentation.
- Proof of Honorable Veteran Status Please redact sensitive information.
- DD214 member 4 copy, Retired VA ID Card, Retirement Certificate, Discharge Certificate – or if currently serving your military ID, badge, recent pay statement. If you need to order a new copy of your DD214 you can do so at www.archives.gov.
You can send the certification documentation several ways:
Government Contract Quotas For Sdvosbs
The Veterans Entrepreneurship and Small Business Development Act of 1999 established an annual government-wide goal of no less than 3% of the total value of all prime contract and subcontract awards go to small business concerns owned and controlled by service-disabled veterans.
On December 16, 2003, the Veterans Benefits Act of 2003 was passed by Congress. Section 308 of the Act established a procurement program for Service-Disabled Veteran-Owned Small Business Concerns . This procurement program provides that federal contracting officers may restrict competition to SDVOSBCs and award a sole source or set-aside contract where certain criteria are met.
However, to capitalize on these regulations , then your company must still get out to the pre-bidding conferences and site visits to champion your SDVOSB rights before the contracting officer makes his procurement decision. And you must proactively convince the contracting officers to change their procurement plan to be SDVOSB set-asides. If you do not accomplish these meet-n-greet opportunities with the contracting office, then it will be too late to champion a justification for set-aside later after the solicitation is officially published for bidding.
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Military Onesource Resources For Transitioning Service Members And Families
Military OneSource is a program funded by the Department of Defense that provides a range of free resources for Veterans and their immediate family up to 365 days after separation or retirement from the military. MilTax, Military OneSources tax services, provides online software for eligible individuals to electronically file a federal and up to three state returns for free through the Military OneSource website. The service also includes tax consultants available by phone to answer tax questions related to deployment, multi-state filing, and combat pay. They also share information on military-specific and civilian tax deductions and credits.
Military OneSource is available 24/7 at and online at MilitaryOneSource.mil.