What Are the Incentives to Having a Woman-owned Business?

Updated on July 30, 2007
J.E. asks from McKinney, TX
8 answers

Hi all,

My husband and I are starting a company and we wondered what benefit there is to naming me the principle owner. His ego is a little bruised by the suggestion, but if there is adequate incentive to putting the biz in my name, he'll relent.

Thanks!

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A.B.

answers from Dallas on

You know... I want to think I heard something about there being some kind of tax breaks... or something... I don't remember what.. but I know there's a department in the city of Dallas that helps out small business owners... maybe you could get in touch with them to ask.

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E.W.

answers from Dallas on

Talk your accountant but there quite a few advantages because it would be considered a minority owned business. Depending on what the business will be also could help you get clients. The company I previously worked for had a requirement that we had to use a certain percentage of M/WOB which was minority/women owned businesses as suppliers.

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T.B.

answers from Dallas on

Women are not considered a minority. Women are their own category. The only gov grants available to women (that I have found) are if you are doing research in a specific field like engineering. Loans may be a different story. I am like you and have just recently been trying to find information on the subject. This is all I have found so far http://www.proposalwriter.com/small.html#General
There are a couple of links and topics in there that you might find interesting too.

Good luck,
T.

Also, if you need someone to do your logo and website give me an e-mail ____@____.com or checkout my website www.fischerswebsites.com...if you don't like the design, you don't have to pay ; )

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K.S.

answers from Dallas on

Yes, there are benefits, especially if you will be working with the public sector (such as schools, universities, city, county, or state government). They often post classified newspaper ads calling for bids on all types of projects. They are usually required to hire a certain percentage of minority or woman owned business contractors. You may only need 51% ownership in the business to make it work.

To apply for status as a Historically Underutilized Business (or HUB) and gain access to bid projects, check out:
http://www.dot.state.tx.us/services/business_opportunity_...

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

A.B.

answers from Dallas on

You know... I want to think I heard something about there being some kind of tax breaks... or something... I don't remember what.. but I know there's a department in the city of Dallas that helps out small business owners... maybe you could get in touch with them to ask.

1 mom found this helpful
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G.A.

answers from Dallas on

Call the Chamber of Commerse or Scores from the SBA. There is a lot of free advice out there. G. W

P.P.

answers from Dallas on

Ditto what Kimberly wrote you.

P.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

P.H.

answers from Dallas on

Lots of tax benefits and you'd be considered "minority owned" which gives some bigger companies and some gov't agencies more initiative to work with you. Get with your accountant and discuss it with him/her. Definatly worth the tax savings if you're hubby will look at the bigger picture.

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S.B.

answers from Dallas on

J. - it matters what type of company you are starting and who your target customers are. If you are targeting government agencies, then yes, definite advantage to woman-owned, as you will fill a set criteria for contractors. But you can still own with your husband 51/49 (so you remain majority owner).

Be forewarned that government contracts are very hard to get and take a really, really long time to procure (I work for a public agency, so I am very familiar with the procurement process) Once you do get them, though, they're pretty lucrative.

Other than that, no, there is no distinct advantage to being woman-owned.

If you're not targeting public sector for customers, I suggest you allow your husband either 50/50 or majority ownership. The continued resentment and ego bruising of NOT doing this will damage your relationship and your company and isn't worth that risk.

Good luck with your venture!

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