Small Business Size Definition

A small business can be as small as one person, or as large as a grocery store.  It is a very wide definition.  For example, Dan is a professional photographer.  He has established an LLC with which to do business, and enjoys traveling to many destinations throughout the year to work on photo shoots for clients.  By forming a corporation, any professional can become a one-person business.  In Dan’s case, this enables him to deduct from his taxes any and all expenses for equipment, travel, hiring extra help, or renting a studio/office.

Other small business owners—like the corner store owner—rely on a handful of employees to fulfill the basic tasks of the business.  This frees him or her up to do the more meaningful work, like managing the accounts/receivables, obtaining business financing, and keeping the business current on all of its fiduciary obligations.  Many owners of businesses this size have challenges like time constraints, employee theft, and missed shifts.

A small business concern for the purpose of Government Procurement is a concern, including its affiliates, which is independently owned and operated, is nor dominant in the field of operation in which it is completing for Government contracts, and can further quality under the criteria concerning number of employees, average annual receipts, or the other criteria as prescribed by the SBA.