How Do I Register as a Woman-Owned Small Business?

ByDanica Djokic
May 10,2022

Gender equality in the workplace has improved in recent years, but women are still far less likely than men to own a business. According to most estimates, women own around 30% of businesses in the US, which is far from ideal, but a big improvement from 1972, when that figure was just 4.6%. So, if you’re asking “how do I register as a woman-owned small business?”, you’re not alone.

There has arguably never been a better time for women-owned SMEs to thrive, not least because the post-pandemic era has opened new doors for small businesses. This guide will teach you about WOSB certification and how to complete your application in style.

An Introduction to Woman-Owned Small Businesses

The concept of a woman-owned small business isn’t difficult to understand; any SME with a female owner can be described as one. However, anyone who wants to know how to register as a woman-owned small business must consider what it means as far as the SBA is concerned.

Experts at LawInsider.com define a woman-owned small business as “a business concern which is at least 51% owned by one or more women, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more women.”

Women-owned businesses can fall into two main categories: WOSB (Women-Owned Small Businesses) and EDWOSB (Economically Disadvantaged WOSB) ventures. Any female entrepreneur(s) wanting to gain this status must apply for it, showing that they meet woman-owned business requirements.

The process of gaining SBA certification for women changed in 2020 in line with the 2015 National Defense Authorization Act (NDAA). To become a WOSB, companies must meet the following criteria:

  • Meet the SBA standards to be considered a small business.
  • Have at least 51% of the company’s voting stocks held by one or more women.
  • Have one or more women involved in managing the daily operations.

Meanwhile, an EDWOSB will meet all of the above criteria while additionally:

  • Being controlled by a woman or women with personal net worth of less than $750,000.
  • Having no owner with personal assets amounting to $6 million or more.
  • Having owners with no more than $350,000 in adjusted gross income averaged over the past three years.

Why Apply for Woman-Owned Business Certification?

Appreciating the existence of WOSB companies is one thing. However, running a company is hard work as it is, so knowing the benefits of gaining woman-owned business certification should be high on your agenda. Of course, taking part in a movement working towards female empowerment is reward enough for many entrepreneurs. But the incentives don’t end there.

The federal government has set aside funds for at least 5% of all contracts to be awarded to registered WOSB companies. This is managed according to the monetary value of contracts, which means that some contracts are limited to bids exclusively from participants of the WOSB Federal Contracting program. 

Moreover, a percentage of contacts is further limited to members of the EDWOSB program. The government is a huge potential client with massive budgets. As such, winning these contracts could transform the future of your business.

As well as the visibility to win contracts that large organizations would have previously won, members gain access to Mentor-Protégé Program and further networking and education opportunities provided by the Women's Business Enterprise National Council. Of course, this can bring leads from other clients while also generally encouraging you to change your approach to business for the better.

How to Register as a Woman-Owned Business

When working out how to register as a woman-owned small business, you need to answer several questions:

  • When can I apply for WOSB certification?
  • Do I have all the papers needed for woman-owned business applications?
  • How much does WOSB certification cost?
  • Do I have to do anything to keep my WOSB status?

Female business owners can apply for certification so that they can gain government contracts for woman-owned business operations at any time of the year. Likewise, you can make your application as soon as you register the business and begin trading.

You can gain your certification through a designated third party or through the SBA directly. While they both deliver the same outcome, the self-certification process is free. As such, many business owners prefer this route.

Before applying, you should confirm that you meet the legal requirements for women-owned businesses. As well as the aforementioned features, the owners must not have been debarred or suspended from any federal entity. On top of this, the company must primarily do business in the US. 

Assuming those criteria are met, the next step is to prepare all the papers needed for woman-owned business applications. You should have the items on the following checklist: 

  • The birth certificates, valid passports, or naturalization papers of the female business owner or owners.
  • Documentation confirming the incorporation of the business, partnership, or venture agreement.
  • Stock certificates or a stock ledger and assumed/fictitious name certificate.
  • Personal tax returns for each woman business owner for three years. For EDWOSBs, tax returns from the owner’s spouse must be included too.
  • Each woman business owner’s IRS Form 4506-T, Request for Tax Transcript. Again, owners of EDWOSBs must include their spouse’s relevant information. 

Once you’ve gathered the necessary documentation, you can submit it to the relevant organization. As well as the SBA’s direct free online certification portal, you can use the NWBOC (National Women Business Owners Corporation), the US Women’s Chamber of Commerce, the WBENC (Women’s Business Enterprise National Council), or the El Paso Hispanic Chamber of Commerce (for South-West Texan businesses).

Furthermore, there’s MWBE (Minority & Women-Owned Business Enterprises), which has offered certification since 1998 and has a 99.9% success rate for applicants. This is open to minority business owners, women business owners, and minority women business owners. 

While underrepresented for many years, minority female business owners are now the fastest-growing group of entrepreneurs, and opportunities are afforded to verified businesses through the SBA 8(a) Business Development Program, NASE (National Association for the Self-Employed) grants, The Amber Grant Foundation, and the FFF (Female Founders Fund), among others.

As for maintaining WOSB status, it’s necessary to complete an annual attestation that confirms your company still meets the regulations of 13 CFR Part 127. You also need to complete an assessment once every three years - this can be conducted by the SBA or a permitted third-party organization as detailed during the application process. 

Extending your status in this way must be done within 30 days of expiration. Businesses can continue to apply for the appropriate contracts in their field as a result of this status for the duration of their membership.

How to Champion Women-Owned Small Business Operations

Whether you’ve gained women-owned business status or you’re in the process of completing your WBE certification application, you can play a big role in the community by supporting other WOSBs. 

While there is still some work to go in the bid for an equal playing field, research shows that there are now nine female entrepreneurs for every 10 male ones. There are many ways you can support them:

  • Celebrate other woman-owned businesses by leaving positive reviews, referring them to friends, and mentioning them on social media.
  • Invest in other WOSBs and mentor up-and-coming female entrepreneurs.
  • Join and create networking opportunities while also introducing female entrepreneurs to one another.
  • Share your knowledge of SBA women-owned business certification to other female entrepreneurs beginning the process.
  • Actively ask them how you can support their ventures.

By playing an active role in the movement, you will continue to create new opportunities for future female entrepreneurs. Better still, the contacts you make will look to actively support your brand too.

The Final Thought on Woman-Owned Business Certification

At the start of this guide, you wondered “how do I register as a woman-owned small business?” By now, we hope you have the answers you were looking for. Furthermore, you should now know the legal requirements for women-owned businesses and how to prepare the appropriate documents. Of course, you’ll still need to think about administrative issues like finding the best small business bank accounts. But those are all relatively minor details.

Embarking on this process means joining an amazing community of supportive female business owners while simultaneously increasing your hopes of securing lucrative contracts from the federal government’s designated WOSB-only contracts.

FAQ
How do you classify a woman-owned business?

Certified women-owned businesses are quite simply those in which at least 51% of their voting stock is controlled by one or more women. To qualify as a WOSB, it must also be a for-profit business that satisfies the Code of Federal Regulations and the appropriate regulations relating to SMEs.

 

What is the difference between WBE and WOSB?

Both WBE and WOSB are useful certifications and both require application processes, but the main difference between the two is that WOSB is limited to organizations within specific NAICS codes, whereas WBE is not, meaning it can be offered by third-party organizations. 

What are the benefits of a woman-owned business?

Gaining certification as a woman-owned business can qualify your company for a range of funding tools. The government is committed to awarding at least 5% of all contracting dollars to WOSBs. Furthermore, certification means joining a supportive community of entrepreneurs committed to female empowerment.

 

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Charitable organizations support and fund causes and initiatives across the world. In this guide, we’ll explore two types of charitable organizations: private foundations and public charities. Although there are similarities, there are important differences in the ways foundations and charities are set up and how funds are collected. In this guide, we’ll delve deeper into the question of private foundation vs public charity, discussing charity and foundation differences and providing a private-public foundation comparison.  What Is a Private Foundation? A private foundation, which may also be known as a private nonprofit, is an independent charitable organization. In most cases, private foundations are established by wealthy individuals, families, or businesses. Unlike public charities, which participate in fundraising activities, private foundations usually generate funds via investment from groups, families, or philanthropists. 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In most cases, the foundation uses an endowment (an initial investment) to generate funds, which are then distributed to causes, initiatives, programs, or schemes run by other individuals or charities. The structure of a private foundation contributes to stability and consistency, as the investment products usually generate a steady, reliable income. This makes budgeting simpler and enables boards, panels or individuals to decide where to spend money and how to make funding choices.  As private foundations are run by donors, they maintain control of: The foundation’s purpose and funding goals and objectives The makeup of the board Funding decisions and the disbursement of funds Which causes to support What Are Public Charities? Public charities are charitable organizations that rely on donations from the general public to support good causes and initiatives. IRS public charities are required to generate at least 33.3% of their income from contributions from the public or meet the criteria set out in the 10% facts and circumstances test. If you operate a public charity, the funds you collect from members of the public are used directly to support your endeavors, for example, giving shelter and meals to homeless people or providing healthcare.  It is critical for boards that run public charities to demonstrate that the acquisition of funds is not carried out to serve the interests of board members or donors. The sole aim must be to support charitable causes through grants and fundraising.  As public charities depend on donations from the general public, they must form a panel of independent members. The board should meet regularly and take responsibility for decision-making. The board should be diverse and it should represent the purpose the organization serves. 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Public charities usually rely on donations from members of the public. It is possible for public charitable organizations to make grants, but this is much less common than for private foundations. Private foundations donate money to public charities or causes, while public charities use funds directly to benefit those in need.  Public Support Public charities must demonstrate that they receive a level of support from the general public to meet IRS criteria. Private foundations are not prohibited from fundraising and they can accept public donations, but most are entirely self-funded.  Board A private foundation is typically run by an individual or a board comprising family members or executives from the same corporation. Public charities must have a diverse board that reflects the charity’s mission; they should not have boards made up of family members or multiple individuals from the same businesses or organizations.  Setup A private foundation requires investment and is usually more expensive to establish. All charitable organizations start life as private foundations. Public charities must prove that they generate at least a third of their income from public donations to qualify for IRS exemption.  Control Running a private foundation is very different from being a board member of a public charity when it comes to control. Individuals and families that operate according to private foundation rules have much greater control than public charity board members. They decide where the money goes and how and when it is spent. Public charities should have a diverse panel of board members and are required to form a quorum to carry out official business.  Public Foundation vs Private Foundation: What Is the Difference? It’s common to come across the terms public foundation and private foundation when researching or reading about charitable organizations. A private foundation is not the same as a public foundation; the latter is another name for a public charity. Many charities have ‘foundation’ in their name, for example, the Make-A-Wish Foundation. Public foundations are funded by donations from members of the public, businesses, private foundations, and the government. Private foundations are funded by individuals, corporations, or families. They are not reliant on public support and maintain control of all funding decisions.  Types of Private Foundation There are two types of private foundations: operating and non-operating foundations. Non-operating foundations: Non-operating foundations are the most common type of private foundation. These organizations provide grants for public charities. Private foundations can generate funds through fundraising activities, but non-operating foundations are not typically involved in running programs. Non-operating private foundations are required to distribute a minimum of 5% of their net investment annually. Operating foundations: Operating foundations are actually involved and engaged in running charitable programs on a continual basis. To ensure that foundations continue to support initiatives in a sustainable manner, they must contribute a sizable portion - around 85% - of net investment assets per year. Operating foundations undertake charitable activities rather than providing grants for public charities. Examples include setting up and running an animal shelter or buying and delivering food supplies, rather than donating to a food bank.  Private Foundation Rules To operate a private foundation, individuals, groups, and corporations must be aware of private foundation rules and submit the required legal papers for foundations and charities. The rules relate primarily to taxation and include the following: Private foundations must distribute around 5% of the previous year’s net investment assets per year. They must provide grants to other charitable organizations rather than individuals (although this may be permitted in certain circumstances, for example, supporting an individual through education). They have to pay 1-2% excise tax on net investment income. Public Charity and Nonprofit Comparison When reading about charitable organizations, it’s understandable to have questions about nonprofit and foundation differences and make public charity and nonprofit comparisons. Nonprofit is an umbrella term that covers a broad spectrum of organizations. Public charities and private foundations are nonprofits, which means that they are run for the benefit of communities or public or social initiatives. Nonprofits are not run to generate profits for donors, owners, or supporters.  What Are the Pros and Cons of Private Foundations? If you want to support good causes, you may be thinking about setting up a private foundation. Here are some pros and cons to consider: Pros Permanence: Private foundations can operate for many years, providing support to recipients on a consistent basis.  Control: Private foundations enjoy a much greater level of control than public charities. Individuals and families have the ability to decide how to spend their money, when to donate to causes, and how much to distribute in grants. Legacy: Many individuals and families decide to establish a private foundation to form a legacy, which can strengthen ties for the future or commemorate those who have passed.  Tax benefits: Private foundations that meet 501(c)(3) criteria are tax-exempt. Contributors can usually claim donations as deductibles and benefactors can collect donations without paying tax on them.  Opportunities: As the rules are more lenient for private foundations than public charities, foundations can take advantage of a wider range of opportunities, including donating to individuals, making international grants, offering scholarships, or setting up and running their own charitable schemes.  Cons Significant setup funds: To establish a private foundation, you need to have a substantial endowment to invest.  Time commitments: Running a private foundation isn’t for the faint-hearted; it takes up a lot of your time.  Record keeping and administration requirements: The paperwork demands of establishing and managing a private foundation can be overwhelming. Summary Private foundations and public charities are both forms of charitable organizations. Private foundations are usually established by individuals, families, or companies, and they make grants and distribute funds through their own investment assets and funds. Public charities rely on donations from the public and they support good causes, communities, and individuals directly.  It’s important to understand the differences between private foundations and public charities if you want to support projects or programs, or if you’re thinking about setting up a foundation. Private foundations retain control of funding decisions, but they’re expensive to set up and they often require a lot of time and effort, particularly during the early stages. Public charities have diverse boards, which are responsible for making decisions, but they are governed by rules that dictate how money is collected and spent.
By Danica Jovic · May 10,2022
Patents are crucial for protecting intellectual property, particularly if you run a small startup. The last thing you want is to invest all your time, energy, and money into a project, only for an unscrupulous rival to snatch your ideas.  The patenting procedure isn’t free, though. In this post, we’ll take a look at how much a patent actually costs. Then, we’ll analyze some patent cost examples before exploring the difference between trademark and patent costs.  Cost of a Patent You can break down the cost of obtaining a patent into three categories:  Government filing fees Attorney fees Drawing fees Patent applications can range from $400+ if you decide to go down the do-it-yourself route to $10,000+ if you use a lawyer. The actual amount you’ll pay depends on your status. Government filing fees for micro-businesses are $400, while those for small entities are $730 or more. If you also require professional drawings to describe your inventions, they will set you back a further $300 to $500, depending on the complexity.  Obtaining a patent isn’t a straightforward procedure. While the application process is affordable for the majority of businesses, the official requirements can be high. The law is becoming more stringent, and government agencies, such as the United States Supreme Court, The United States Patent and Trademark Office, and the United States Court of Appeals for the Federal Circuit, are constantly adding more regulations. To secure a patent, you must demonstrate in writing that your invention is unique and be able to prove this to the USPTO. You need to show that you’ve developed something original that other market participants are not yet using. And you must describe it in such a way that meets the various legal requirements of government agencies. Therefore, while the price of a patent application might seem relatively manageable, the likelihood of success depends entirely on the quality of the communication.  Certain types of patents may be more complicated than others. If you’ve hired a lawyer to draft your application for you, it may take them time to get up to speed with the technical aspects of your invention. Your patent could seem simple to you, but it might be complicated for a lawyer to grasp if it’s technically intricate. This may then drive up your costs, since you’ll require lengthier consultations with your lawyer.  Software patenting costs tend to be higher because of the difficulty in understanding the innovation. It may also be hard for the patent office to determine the way in which the invention is unique or original, increasing patenting fees and surcharges further.  Types of Patents and Their Costs Because of the varying complexity of patents, they have different costs. However, there are diverse types of patents that you can apply for.  Non-Provisional Patent Application Non-provisional patent applications protect your invention for as long as it remains in effect. Prices start from around $400 and include search, review, and examination fees. At the higher end of the price spectrum, a non-provisional application may cost over $15,000 if most tasks are handled by a lawyer. However, you should keep in mind that how much you pay depends primarily on the complexity of the invention. Attorney patent prices are significantly lower for simple inventions compared to complicated or software-based ones. Provisional Patent Application Provisional patent applications are popular among organizations that want to begin protecting their intellectual property immediately but don’t have time to file a non-provisional patent application. Allowing time for the non-provisional patent application to go through, provisional patents protect firms for 12 months against IP theft.  As you might expect, filing for a provisional patent can be significantly cheaper than a non-provisional patent since it is temporary. You can pay as little as $65 in filing fees if you do it yourself, but more realistically, $5,000-$10,000 with the help of a lawyer.  Design Patent Design patents protect your product’s unique appearance, for instance, the particular shape of a plastic bottle, earplug, or medical product. And because they only involve the evaluation of shape, prices tend to be much lower. Therefore, you can expect to pay $2,500-$3,000, including a $140 examination fee.  Design patents are essential in the fashion industry. A designer bag might not represent anything new in the technical sense, but the new design could be critical for the fashion house’s competitive advantage. Most importantly, a design patent can prevent rivals from creating copycat products.  Plant Patent Lastly, plant patents prevent anyone else from utilizing a particular plant for commercial gain. These patents mainly affect plant hybridization and genetic modifications, as plants found in their natural state cannot be patented.  Application costs for plant patents range from $360 to $720, whereas $170 of this cost covers examination fees. Total costs, including legal fees, are $4,600-$7,600.  What Factors Affect the Cost of Filing a Patent? So far, we’ve discussed patent costs in terms of averages. However, the amount that you actually pay will be calculated on the basis of various factors to do with the patent itself. Your product is similar to others. If your product is completely original and new, it is usually quite straightforward to determine its patentability. However, if you are adding a product to a saturated market, the patenting price rises. It is more difficult to demonstrate that the invention is unique and, therefore, requires more labor.  You want to protect your product in several countries. Protecting your intellectual property in the US is relatively clear-cut. However, you will need to pay additional fees to patent examiners in other countries if you want to protect it internationally.  You see a big market opportunity. In many cases, the greater the profits that an invention will bring, the more money it’s worth spending patenting an invention.  Your invention involves technology. As you might expect, a complex mechanical patent costs significantly more than a simple one. It takes time for examiners and lawyers to understand how it works and assess it accordingly. You operate a large business. Lastly, the price of a patent will go up if you run a large business. Individuals, micro-entities, and small businesses pay the least.  Patent Cost Examples Let’s take a look at some examples of how much you are likely to pay for a patent, from the simplest to the most complex:  Licensing a patent cost Invention Type Example Patent Attorney Cost Search Costs Very Simple Paper clip, bowl, wallet, packaging, tea cozy $5,000-$7,000 $1,000-$1,250 Simple Fanny pack, children’s toy, drinks flask, dog harness $7,000-$8,500 $1,000-$1,250 Low Complexity Handheld tools, MP3 player, disposable camera $8,500-$10,000 $1,250-$1,500 Medium Complexity Solar panel pack, pop-up tent $10,000-$12,000 $1,500-$1,750 High Complexity Prosthetic limbs, telecommunications equipment, medical scanners $14,000-$16,000 $2,000-$2,500 Software Machine learning systems, automated control systems, networking software More than $16,000 $2,500-$3,000   These figures are just an estimate and should be adjusted for each case. However, as you can see, the main cost is definitely legal fees. Other costs only make up around 20%-30% of the total price.  Here is an example of how your costs might break down for a consumer electronics product, such as a bicycle GPS or Bluetooth headset:  Patenting a consumer electronics product – example Service Price  Patent search with attorney opinion $1,750 Provisional patent preparation and filing $2,500 USPTO provisional filing fee $130 Non-provisional patent filing $6,000 USPTO non-provisional filing fee $800 Professional illustrations $500 Total $11,680   As you can see, the costs can add up quickly. Even a relatively simple invention patent can reach five figures or more. However, the cost of a patent is considerably lower than the costs that might ensue in case of not filing.  How Much Does It Cost To Appeal a Rejected Patent Application? The USPTO won’t always accept your patent, even with the help of lawyers. However, if they reject it, you can still appeal.  Filing a written response costs $2,000-$5,000, and if you want to speak to a USPTO representative face to face, you may have to spend thousands more dollars. There is no guarantee that your appeal will be successful, either, so it’s advisable to speak to an attorney before you proceed.  Patent Maintenance Fees Non-provisional patents are for life, and you don’t need to pay recurring fees to keep them active. However, the USPTO requires inventors to pay periodic maintenance fees for provisional patents.  This breaks down as $980 after three and a half years, $2,480 after seven and a half years, and $4,110 after 11 years. Using this method, some inventors may be able to protect their intellectual property for the product’s entire life if obtaining a full non-provisional patent is not possible.  During this time, you can also make amendments to your invention. These cost $2,200-$3,500 and may help advance your non-provisional application in the sense that the alterations might be sufficient to convince the USPTO that your patent is one of a kind. Furthermore, inventors of any type of patent (including non-provisional) may also be subject to ongoing costs. These include financial services administration fees, post-issuance fees, and extension-of-time fees, which let patents run for longer.  Trademark vs. Patent Cost While trademark filing fees are roughly the same as patent fees – between $225 and $600 – legal costs vary significantly. In general, legal fees will be substantially lower (and sometimes non-existent) when filing for a trademark. It is solely in cases when applicants are challenging the trademark of another brand that they may incur considerable legal fees. Asking the question “how much does it cost to patent a name?” doesn’t make a lot of sense, as trademarks, which are not inventions, cannot become patents. Should You Use a Patent Cost Calculator?  It’s not always clear what the ultimate cost of a patent will be. However, you might be able to get an estimate using a patent cost calculator. It will help evaluate the complexity of the patent and then give you a ballpark figure based on current fees and cost estimates.  Calculators, though, are not a substitute for a professional opinion. Experienced attorneys should be able to tell you both the likely legal and total cost of an invention after reviewing your ideas.  Conclusion So, how much does a patent cost? The price you pay for a patent depends heavily on the type of invention you want to launch on the market and the type of patent you obtain. Other factors that can lead to higher costs include things like the number of similar patents already registered and the size of your business. As a general rule, you should expect to pay a minimum of $5,000 with legal assistance.
By Danica Djokic · April 29,2022

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