Question 1

Must the service-disabled veteran hold the highest officer position?

Accepted Answer

Yes. The service-disabled veteran must hold the highest officer position in the business — typically President, CEO, or Managing Member/Partner. In cases where a non-veteran holds a title like Executive Chairman or Chairman of the Board with actual operational authority, this can jeopardize SDVOSB status. The veteran's title must reflect genuine operational control, not just ownership.

Question 2

What control requirements must an SDVOSB meet?

Accepted Answer

The service-disabled veteran(s) must control the management and daily business operations of the firm. Control means the veteran must hold the highest officer position (e.g., CEO, President, or Managing Member), manage day-to-day operations, and possess the requisite managerial experience to run the business. The veteran cannot be a mere figurehead — non-veterans cannot run daily operations even if the veteran is the majority owner.

Question 3

Can a non-veteran manage an SDVOSB's daily operations?

Accepted Answer

No. The service-disabled veteran must manage the day-to-day operations of the business. A non-veteran may handle specific functions or serve in a management role, but ultimate authority over daily business decisions must rest with the veteran owner. If a non-veteran effectively controls operations, the business will not qualify as an SDVOSB regardless of ownership percentages.

Must the service-disabled veteran hold the highest officer position?

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