Do Minority Business Owners Get Tax Breaks?

It is one of the most critical questions any minority business owner will ask. And the answer is yes.

Minority business owners are provided with a range of tax breaks to promote their businesses and help them gain a foothold in a competitive economic landscape. Depending on federal, state, and local laws, minority-owned small businesses might qualify for preferential tax treatments associated with certain credits and deductions that regular companies or other business entities may not be eligible for. For instance, businesses collaborating with recognized Minority Business Enterprises (MBEs) may be eligible for tax incentives. In this situation, they must meet certain requirements, such as:

• One or more minority U.S. citizens own and run at least 51% of the business.

• The minority ownership member oversees the management and day-to-day operations.

• The company is a for-profit enterprise headquartered in the United States or trust territories.

Tax breaks can provide an effective tool to assist businesses in successfully launching their businesses, as well as helping sustain long-term profitability.

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Written by: Svetlana Sosnova

Contact information: Svetlana.n.sosnova@gmail.com