Military Spouses' Career Network

On Self-Employment

Self-employment is one option for maintaining a career in spite of frequent PCS relocations. But you should be fully informed about the demands of self-employment before embarking on this path. If you have more than a one-person business in mind (sometimes referred to as a micro-business, as a small business can have as many as 500 employees), the differing business registration requirements, employment laws, and tax regulations from state to state can really tarnish self-employment as an attractive option for military spouses.

Regulations have changed in recent years, enabling military family members to conduct some home-based businesses from military housing. However, there are many restrictions, and you must request permission from the installation commander in writing BEFORE beginning to conduct business from your government quarters. For more information, see Operating a Home-Based Business in Military Housing.

To legally do business in a state, you must usually register with the city, county, or the state, fill out the appropriate forms, and pay the annual fees. If you sell a product, you are required to collect and pay sales tax in most states (and some states even require sales tax to be paid on services). Home businesses are generally NOT EXEMPT from these requirements, which are often confusing, and sometimes expensive. If you have employees, you must obtain workers' compensation insurance, pay unemployment insurance and taxes, withhold federal and state (and maybe even local) income taxes, pay medicare and social security taxes, and possibly have to deal with health insurance and other fringe benefits.

Treating employees as "independent contractors" is very risky, as the IRS scrutinizes such activity very carefully, and will severely penalize you if it disagrees with your handling of an employee. You can hire temporary employees through agencies to legally avoid such hassles, but this is often not cost-effective in the long run. So, look before you leap into self-employment; you can start at these links:

The Military Spouse Entrepreneurial Information Page

Developed as a result of the Military Spouses Entrepreneurial Readiness Program, a two-year test project between the Small Business Administration and the Department of Defense. Military spouses in the Norfolk and SanDiego areas were offered an opportunity to participate in the program. Their success stories are highlighted in the accompanying FAQs.

Military Childcare Provider Forum

Military spouses who provide provide childcare services in their licensed, government-owned housing are an important part of the Defense Department's goal to meet a substantial portion of existing childcare needs among military families. An opportunity to earn income and make an important contribution to the lives of military children, Family Home Childcare provides a portable career with the demand for services almost guaranteed at every duty station. This DoD-sponsored forum fosters communication among military family home childcare providers, and is a great place to ask questions if you're considering this as a career option.

Consumer Information Catalog - Small Business
Information on U.S. government publications (available for $2.50 or less; some available free on-line), including "Starting a Business," "Resource Directory for Small Business Management," "Selling a Business," "Guide to Business Credit for Women, Minorities, and Small Businesses," and others. Other publications also available.

Yahoo: Small Business Information
Great links to small business information on the web.

Home Based Business Directory

National Association for the Self-Employed

National Association of Entrepreneurs

Small Business Administration
Look here for information on SBA programs and resources.

Small Business Resource Center
Written by an entrepreneur, for entrepreneurs.

If you do decide to pursue self-employment, there are several things that you can do to increase your chances of it becoming a successful, rewarding, and enjoyable adventure.

Contact your local Small Business Administration. They offer free seminars on starting your own business. They also provide assistance to small business owners through the "Service Corps of Retired Executives" (SCORE), free consulting for start-up businesses, provided by retired executives who want to assist budding entrepreneurs. Some SBA seminars are offered at military installations-- check with your local Family Readiness Center.

Join (or form) a support (or networking) group for small business operators. The camaraderie, mutual referrals, and information network developed will prove invaluable.

Join the local area's Chamber of Commerce-- it's an excellent mechanism for networking, meeting potential customers, and developing leads. While being a new business in the area can be tough, you can mitigate this by advertising in the Chamber's publications. Because the Chamber publications are regularly distributed to those who are newly relocating to the area, it's the perfect way to reach other newcomers-- people who would be most willing to try your products and services, because they don't already have an established business relationship with your competitors. In general, the more active you become in the local civilian community, the greater will be your chances of succeeding (unless your business's product is only of interest to military patrons, in which case being active in base/post activities might help).

And one final suggestion: If you're looking for employees-- Start by recruiting through your installation's Family Readiness Center employment assistance program. Your solution to unemployment can mean the end to unemployment for other military spouses!