How to determine if your Adjusted Gross Income is below the $250,000 threshold

The $250,000 Threshold for Adjusted Gross Income (AGI)

Among the many 8(a) business development program eligibility requirements the applicant for 8(a) Certification must have is an average AGI over the past three taxes years of less than $250,000.

What is the definition of Adjusted Gross Income?

Adjusted gross income (AGI) is a tax term for an amount used in the calculation of an individual’s income tax liability. AGI is calculated by taking the applicants gross income and subtracting their maximum allowable adjustments. AGI is located on line 37 on your Form 1040 for 2017 personal taxes and before and on Line 7 for 2018 personal taxes.

15 8(a) Application Killers

Spending the time upfront to ensure that your firm meets all of the eligibility requirements for 8(a) Certification can save you countless hours of frustration, the expense of putting the application together incorrectly and the difference between obtaining formal 8(a) Certification or not.

Below are just 15 of the 8(a) Application “Killers”. These will immediately tell you whether you have an issue that may prevent you from qualifying for 8(a) Program certification. We also offer a online 8(a) eligibility questionnaire to help determine your overall 8(a) Program eligibility.

8(a) Application Tip on Business Tax Returns

The SBA will verify the following:

Have you provided complete copies of the Federal business tax returns for the last three years.

  • 1120 or 1120s for Corporations.
  • 1065 for Limited Liability Companies and Partnership.
  • Schedule C for Sole Proprietors or Single Member LLC’s treated as disregard entity.

Five myths about doing business with the Federal Government

Myth #1 – “Only Big Companies Win Contracts”

Fact – Preferential treatment is actually given to small, minority, woman, handicapped and service disabled owned business. Small businesses get awarded close to 25% of all federal contracts.

In FY 2017: 8(a) firms were awarded $27,167 billion in federal contracts. Of that amount, these 8(a) firms were awarded $7.971 billion through 8(a) set-asides, $8.445 billion through sole-source contracts and $6.110 billion either through open competition or with another small business set-aside such as small business set-asides and Hubzone set-aside or sole source contracts.

How to write your 8(a) Business Plan Executive Summary

The Executive Summary is the most important section of your 8(a) Business Plan. It provides a concise overview of the entire plan along with a history of your company. This section describes the fundamental elements of your business, as well as what business you are in, why you are in it, and what you hope to accomplish.

8(a) Economic Dependency or the 70% Rule Explained

Do you have all your eggs in one basket? Economic Dependence is a significant obstacle to the eligibility of many applicants desiring to gain 8(a) Certification for their business. In fact, it is currently the #1 issue for which we have to turn the greatest number of potential 8(a) applicants away, until the issue is resolved.