The Small Business Administration, or SBA, is a federal agency designed to protect and promote small businesses. Many small business owners are self-employed and have not registered themselves as a corporation, partnership, or sole proprietorship. Often, this lack of paperwork confuses tax specialists, leading to delays and penalties. There is a process for filing an application for a tax certificate. There are also measures in place for protecting small companies from creditor lawsuits, including protecting them from being transferred to bankruptcy.
The SBA was created by congress to assist small businesses with helping them through the process of starting and growing. Over the course of three decades, the SBA has helped countless small businesses become financial success stories and help those with no formal corporate structure. According to the SBA’s most recent annual report, there are 38.5 million small businesses in the United States that do not have any formal corporate structure. You can get more information about Small Business Insurance Quotes Online.
There are two main ways to ensure that these small businesses remain profitable. The first is to follow all applicable small business size standards. These standards require the following elements to be present in the ownership structure of any small businesses seeking government contracting. The second is to partner with those who are willing to provide these necessary resources and assistance.
Government contracts are based on small business size standards. When applying for any type of contract, potential vendors are required to submit detailed information on their prior experience and training, along with their ability to meet the requested requirements. Applicants are also required to submit their tax returns and payment receipts. All information submitted to the agency must be honest and complete.
As one of the main purposes of the SBA is to help small business owners, it is important to remember that they have specific requirements that must be met in order to receive SBA assistance. One of these requirements relates to sole proprietorship. As a small business size standard, sole proprietors are not eligible for most contracts. This is due to the fact that sole proprietors do not own the company. Solicitors must maintain records that show ownership of the company.
As a result of sole proprietor laws, many small business owners may choose to go the company route. This allows them to receive the assistance they need, while avoiding the complications that come with sole proprietor status. A small business will only be able to accept a limited amount of government contracts. If the company begins to grow, however, they may be required to participate in an SBA program.