Washington State Department of Services for the Blind

What Is Self-Employment?

Self-employment is defined as an enterprise in which the participant is the single owner of a sole proprietorship or a partner in a partnership. This includes sole proprietorships that operate as an independent contractor.

What Is a Small Business?

Section three of the Small Business Association (SBA) Act*, defines a small business as an “independently owned and operated” enterprise that “is not dominant in its field of operation.” This includes but is not limited to “enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries.” Furthermore, barring any other provision of law, an agricultural enterprise is deemed a small business if it “has annual receipts not in excess of $500,000.”

In addition to the criteria above, the state or local SBA Administrator may follow size standards in order to determine whether or not an enterprise at hand is a small business. These standards can involve any number of appropriate factors, including number of employees, dollar volume of business, net worth, net income, or a combination thereof.

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