Women owned Company

[wizash2]

I have a LLC with S Corp tax treatment. Last year my wife was 55% owner and I was 45%.
However during tax filing CPA mentioned me as President. CPA said it does not matter. On paper both of us are just "members"
We need to apply our company for Minority and women owned Company and minority owned.
My wife does has more share. So my question is - me designated as President - is it a hurdle for Women Owned certification?
If yes, what is the best way to correct it.

Appreciate your input!!

[Harold Mansfield]

My wife does has more share. So my question is - me designated as President - is it a hurdle for Women Owned certification?
If yes, what is the best way to correct it.

Appreciate your input!!

There's a "Woman Owned" Certification? From who? Who grants this certification?

[Brian Altenhofel]

There's a "Woman Owned" Certification? From who? Who grants this certification?

The US Small Business Administration does, as well as several state governments. WOSBs are treated in a similar manner as minority-owned small businesses. It gets you moved closer to the front of the line in government contracts, and there are tax incentives for private sector businesses to use their products or services.

[Harold Mansfield]

The US Small Business Administration does, as well as several state governments. WOSBs are treated in a similar manner as minority-owned small businesses. It gets you moved closer to the front of the line in government contracts, and there are tax incentives for private sector businesses to use their products or services.

Ah! OK, so the OP is trying to qualify for something. Well, aren't there clear standards spelled out that have to be met? Seems like following whatever those rules are is where he needs to be.

[KristineS]

Being a woman owned business does have some advantages. We've looked into it several times as the company for which I work is owned by a woman.

The Women's Business Enterprise National Council is one organization that can help woman owned businesses get certified. Introduction to Certification — WBENC (http://www.wbenc.org/certification)

The National Women's Business Owner's Corporation is another. Basic Information About Certification (http://www.nwboc.org/Basic_Info/index.html)

[cancanconat]

That should not be an issue - it's normally (at least in Michigan and for WBENC Certification) based on ownership and if she owns more than you - that means it's woman and minority owned.

[Business Attorney]

That should not be an issue - it's normally (at least in Michigan and for WBENC Certification) based on ownership and if she owns more than you - that means it's woman and minority owned.

That statement is NOT correct. I can't speak to the requirements of the state of Michigan but WBENC certification requires BOTH ownership and operational control. WBE and MBE Certifications :: Illinois Business Attorney (http://www.illinoisbusinessattorney.com/articles/wbe-certification-requirements.html)

As an LLC (even though for TAX purposes the business is treated as an S corp), control is generally spelled out in an operating agreement. Although an LLC can provide for officers and titles. most basic forms of operating agreement do not. Merely calling yourself "president" with no operating authority may or may not have any legal affect, but it certainly muddies the waters. It might be viewed the a certifying agency as a problem or at least a red flag that has to be further explained.

It is not a good idea.