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Small Business Owned and Controlled by Service-Disabled Veterans

Understanding Small Business Owned and Controlled by Service-Disabled Veterans

Q: Can a spouse manage the business?

Yes, if the service-disabled veteran has a permanent and severe disability, their spouse or permanent caregiver can manage the business operations.

Q: How can I certify my business as veteran-owned?

You can apply for certification through the Small Business Administration or other state-specific programs designed for veteran-owned businesses.

Definition & Meaning

A small business owned and controlled by service-disabled veterans is defined as a business where at least fifty-one percent of the ownership is held by one or more individuals who are service-disabled veterans. This definition applies to both privately owned businesses and publicly traded companies, where fifty-one percent of the stock must be owned by service-disabled veterans. Additionally, the management and daily operations of the business must be primarily overseen by these veterans. In cases where a service-disabled veteran has a permanent and severe disability, their spouse or permanent caregiver may fulfill this management role.

Table of content

Legal Use & context

This term is commonly used in the context of federal contracting and procurement, where there are specific programs designed to support small businesses owned by service-disabled veterans. It is relevant in areas such as business law, government contracting, and veteran affairs. Understanding this definition is crucial for veterans seeking to access government contracts or financial assistance programs. Users can manage related forms and applications through resources like US Legal Forms, which provide templates for necessary documentation.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A service-disabled veteran starts a construction company and owns sixty percent of the business. They manage the day-to-day operations, making the company eligible for veteran-owned business programs.

Example 2: A publicly traded company has a service-disabled veteran owning fifty-one percent of the stock and actively managing the company. This structure qualifies it as a small business owned and controlled by service-disabled veterans.

State-by-state differences

State	Differences
California	California has specific certification programs for veteran-owned businesses that may differ from federal standards.
Texas	Texas offers additional benefits and programs for service-disabled veteran-owned businesses, including state contracting preferences.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Veteran-Owned Business	A business owned by a veteran, regardless of disability status.	Does not require the owner to be service-disabled.
Small Business	A business that meets specific size standards set by the SBA.	Ownership by service-disabled veterans is not a requirement.

Common misunderstandings

What to do if this term applies to you

If you believe your business qualifies as a small business owned and controlled by service-disabled veterans, consider the following steps:

Gather documentation proving ownership and control, such as business registration and management records.
Explore certification programs available through the SBA or state agencies to access benefits and contracting opportunities.
Utilize resources like US Legal Forms to find templates for necessary legal documents and applications.
If your situation is complex, consulting with a legal professional may be beneficial.

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Quick facts

Ownership Requirement: At least 51% owned by service-disabled veterans.
Control Requirement: Daily operations managed by service-disabled veterans or their caregivers.
Eligibility: Must be recognized as a service-disabled veteran by the VA.

Key takeaways

Frequently asked questions

What qualifies as a service-disabled veteran?

A service-disabled veteran is someone who has a disability resulting from an injury or illness incurred during active military service, recognized by the U.S. Department of Veterans Affairs.