subject: Federal Contracting for Home Based Businesses [print this page] Federal Contracting for Home Based Businesses might seem like an oxymoron, but in fact it is a combination that could help you win more contracting opportunities. You might be thinking how can a home based business actually compete and win federal contracts without being a regular business.
In many ways a home based business may be in a position to leverage its location to win contracts that are specifically set aside for small businesses within a HUB zone. So what's a HUB and what its advantage for home based businesses in federal contracting?
The term HUB ZONE is a federal designation for historically underutilized business. The goal of the program according to SBA is to provide contracting assistance to small businesses located in these economically distressed communities. This assistance includes setting aside federal contracts specifically for small businesses within HUB Zones. If you want to leverage your location as a home based business for federal contracting you must become HUB Zone certified.
Before you run off and check out how to get certified or to see if you are in a HUB zone you should first do an internal evaluation.
- First, is your business registered with the state in which you do business in? In most states you need to register your business with the Secretary of State.
- Secondly, is your business registered with your local revenue office? You will need to make sure you have a license to have a business in the county in which you live. This is very important to establishing and maintaining the legitimacy of your business.
- Thirdly, does your business have a tax id? You will need to register your business with the IRS and receive an Employer Identification Number (EIN).
If you have done all the things above you are ready to check to see if you are located in a HUB Zone. You can check the electronic map online and determine if your location is within an existing HUB Zone or in a newly qualified HUB Zone area.
Once you have determined that you are in a HUB Zone and want tackle HUB Zone certification, then get ready for a rigorous review process. A certification agency will review your company and finances to determine if you qualify for the designation.
Securing a HUB Zone certification is a major step to becoming a successful federal contractor. While many small businesses are successfully without this designation,
however those with it are more attractive to federal buyers and prime contractors because small business that are HUB Zone certified satisfy two set aside funding goals.
Federal Contracting for Home Based Businesses
By: Shawn Herring
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