Understanding Small Business Owned and Controlled by Veterans: Key Legal Insights

Definition & Meaning

A small business owned and controlled by veterans is defined as a business entity where at least 51 percent of the ownership is held by one or more veterans. This includes both privately-owned and publicly-owned businesses. Additionally, the management and daily operations of the business must be directed by one or more veterans. This definition ensures that veterans have a significant role in both the ownership and management of the business, supporting their transition into civilian entrepreneurship.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A veteran named John starts a landscaping business and owns 100 percent of the company. He manages all operations and hires other veterans to help run the business. This qualifies as a small business owned and controlled by veterans.

Example 2: A publicly-traded company has 60 percent of its stock owned by veterans, and its CEO is a veteran. This company also meets the criteria for being a small business owned and controlled by veterans.

State-by-state differences

Examples of state differences (not exhaustive):

State Criteria Variations
California Offers additional grants and resources for veteran-owned businesses.
Texas Has specific certifications for veteran-owned businesses to access state contracts.

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
Minority-Owned Business A business where at least 51 percent is owned by individuals from minority groups. Focuses on racial or ethnic minority ownership rather than veteran status.
Women-Owned Business A business where at least 51 percent is owned by women. Specifically targets female ownership and management.

What to do if this term applies to you

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

  • Gather documentation proving ownership and management by veterans.
  • Explore certification programs that can provide additional benefits and access to government contracts.
  • Utilize US Legal Forms to find templates for necessary forms and applications.
  • If your situation is complex, consider consulting a legal professional for tailored advice.

Quick facts

  • Ownership Requirement: At least 51 percent by veterans
  • Control Requirement: Daily operations managed by veterans
  • Benefits: Access to government contracts and funding programs
  • Documentation: Proof of ownership and management needed

Key takeaways

Frequently asked questions

A veteran is typically defined as a person who has served in the armed forces and has been discharged under conditions other than dishonorable.