MarketConnect | Presented by Allen Barron, Inc.
In a world of advanced technologies and communications, the line between local and global has faded – and as global has become locally accessible, defining a minority-owned business has become equally nebulous.
“From federal to state programs, the criteria for what constitutes a minority-owned business varies as much as the possible benefits,” advised Janathan L. Allen, Esq., Partner at Allen Barron, Inc. “If the real reason you are considering status as a minority-owned business is for tax credits, remember that tax credits are complex and the real questions is: What are your goals? What are the steps you need to take and do those steps include becoming a certified minority-owned business?”
Your business is your expertise. Your accounting, tax and legal decisions are interrelated – but that knowledge comes from planning with professionals who listen to you, are qualified to pick up secondary issues, and understand the difficult decisions that entrepreneurs have to make. “For example,” Allen explained, “a local surfer came in with a clothing design, web page running, and surf shops in Australia interested in the line. He had questions about business structure. When we discovered that he had not trademarked his intellectual property yet, that became his immediate action item.”
Allen strongly emphasized, “Tax credits alone are not the reason to become a minority-owned business. Potential benefits may include loan programs, access government contracts, local tax credits. The decision goes back to the beginning of planning – a holistic approach ensures that decisions made are not nonsensical.”
It is essential to be aware of programs that may accelerate the growth of your business – emphasis on the word may. “Before deciding your strategy,” said Allen, “you need to define your plan. Fifteen to 20 years ago we were far more limited and there was less criteria to consider. Today’s local business world is global – you need comprehensive solutions to expand your ideas globally.”