What Defines a Small Business?

July 26, 2019

Every year, thousands of small businesses get access to programs designed to help them thrive and prosper. From specialized loan programs to local tax incentives and even some grants, there are a lot of ways the government and other institutions work to help nurture entrepreneurs. What makes a small business, though? The definition is a little hazy, and the more you try to pin it down, the harder it gets to define. That’s largely because many grants and programs define the term for themselves, as a way of narrowing the scope of their audience.

Work With Professionals

Whether you’re looking for tax programs or simply trying to get the numbers you need to determine whether you can apply for a small business loan, you need the right Los Angeles accounting firm to handle your business finances and tax matters. Outsourcing your accounting is the best option for many small businesses, since full time tax professionals tend to be quite an investment in salary and benefits.

So, What Is a Small Business?

If you’re following the SBA guidelines, it’s usually a company that makes less than $1 million per year in profits, but if you look at other programs and definitions, it could also be:

• A company with less than 100 employees
• A company with less than 20 employees
• A company with income under $1.25 million per year
• A company that has less than 250 employees and operates in just one state
• A family-owned company with a single operational facility 

In a lot of ways, the definition of small business is in the eye of the beholder.

Find an Accountant Service in Los Angeles 

It’s a big area, and there are a lot of companies that need tax help. When you’re looking for an Encino accountant for your small business, look for professionals who focus on helping small business owners understand their obligations and opportunities. That way, if you run across a program that uses a funny definition for small business, you will have some help understanding if it is right for you. Don’t wait to get the help your small business needs.