If you’re a veteran receiving a 100% disability rating from the Department of Veterans Affairs (VA), you may wonder if your VA benefits allow you to start and run your own business. The good news is that you can absolutely own a business without losing your VA disability compensation, as long as you meet certain conditions. In this post, we’ll explore what you need to know about owning a business with 100% VA disability, the benefits available to you, and how to get started.
Can 100% VA Disability Own a Business?
Veterans with a 100% disability rating can legally own and operate a business. However, the key factor to consider is whether you are receiving Total Disability Individual Unemployability (TDIU) benefits. TDIU is a VA benefit that compensates veterans who are unable to work due to their service-connected disability.
If you’re receiving TDIU, you must be mindful of income limits because earning above a certain threshold can affect your benefits. On the other hand, veterans who are 100% disabled but not receiving TDIU benefits are generally free to run a business without any impact on their disability compensation.
What About Service-Disabled Veteran-Owned Small Businesses (SDVOSB)?
As a 100% disabled veteran, you may be eligible for Service-Disabled Veteran-Owned Small Business (SDVOSB)certification, a program that offers special advantages when bidding for federal contracts. The government has a goal to award 3% of federal contracts to SDVOSBs, so obtaining this certification can give your business a significant edge in securing contracts, particularly with the federal government.
To qualify for SDVOSB certification, your business must be at least 51% owned by a service-disabled veteran, and the veteran must control day-to-day operations. Additionally, you’ll need to prove your eligibility through a detailed application process with the VA’s Office of Small & Disadvantaged Business Utilization (OSDBU).
VA Benefits and Business Ownership: What You Need to Know
Running a business as a 100% disabled veteran doesn’t mean you have to forgo VA disability benefits. However, it’s essential to understand how income from your business might affect other VA benefits, such as healthcare or education benefits. If you’re receiving a disability pension, for instance, additional income may reduce your pension payments.
But don’t worry—there are resources available to help you navigate the intersection of business ownership and VA benefits. You can consult with VA representatives or financial experts to ensure that starting your business won’t unintentionally affect your benefits.
Additional Support for Veteran Entrepreneurs
Aside from SDVOSB certification, there are a variety of resources and programs designed to help veterans start and grow their businesses. For example, many states, including Michigan, offer a 10% pricing preference for service-disabled veteran-owned businesses when bidding on state contracts. These programs can provide a significant advantage in winning contracts and growing your business.
In addition to federal programs, local Small Business Development Centers (SBDCs) and the Veteran’s Business Outreach Center (VBOC) offer mentorship, training, and financial support to help you succeed as a veteran entrepreneur.
Steps to Starting Your Business as a Disabled Veteran
If you’re ready to take the plunge and start your own business, here are a few essential steps to follow:
1. Develop a Business Plan: A solid business plan outlines your business goals, target audience, marketing strategy, and financial projections. It’s essential for securing funding and guiding your business forward.
2. Register Your Business: Depending on your location, you’ll need to register your business with your state and local government. This includes choosing a business structure (LLC, corporation, etc.), registering your business name, and obtaining necessary licenses.
3. Seek Funding and Grants: There are various funding options available for veterans, including VA loans and grants for veteran-owned businesses. Explore options like the Veteran Entrepreneur Portal (VEP) to find funding opportunities tailored to veterans.
4. Get Certified: If you plan to pursue federal contracts, applying for SDVOSB certification is a must. It can also be beneficial to apply for state-level certifications, depending on where you plan to do business.
5. Join Veteran Business Networks: There are numerous organizations and networks specifically for veteran business owners. Joining these groups can provide valuable support, mentorship, and networking opportunities.
Conclusion
In summary, veterans with a 100% disability rating can certainly own a business, and there are many resources available to help you succeed. Understanding how business ownership interacts with your VA benefits is crucial, but with the right preparation and support, you can build a successful business without sacrificing your disability compensation.
Explore opportunities like SDVOSB certification, apply for funding, and tap into veteran-focused resources to make your entrepreneurial journey smoother. With the right knowledge and determination, your business can thrive.
