Bottom Line Up Front: Military spouse unemployment is 21% (vs. 3.5% civilian average) due to frequent PCS moves. Entrepreneurship solves this with portable income you control. Key decision: Which state to register your LLC affects taxes for every future PCS. Smart strategy: Wyoming or Delaware LLC + virtual address = $50-200/year total cost, no state income tax, PCS-proof. Real example: E-6 spouse running $80K/year e-commerce business through 3 PCS moves with zero business interruption.
Table of Contents
- Why Military Spouse Entrepreneurship Works
- Best Business Types for Military Spouses
- LLC Setup Strategy: Which State Matters
- Tax Implications Across State Lines
- Spouse-Owned Rental Properties
- Business Banking and Credit
- Insurance and Legal Protection
- PCS Business Continuity Plan
- Common Mistakes
- Action Steps
- FAQ
Why Military Spouse Entrepreneurship Works
The Military Spouse Employment Crisis
- Unemployment rate: 21% (military spouses) vs. 3.5% (civilians)
- Wage gap: Military spouses earn 38% less than civilian counterparts
- PCS frequency: Every 2-3 years on average
- License portability: 35% of military spouses work in licensed professions that don't transfer across states
Why Traditional Employment Fails
Employer Hesitation: Civilian employers see "military spouse" on a resume and make assumptions: You'll move in 2 years. Your spouse will deploy and you'll need time off. You might have childcare gaps. You're "unreliable" even if you're the most qualified candidate. This isn't legal discrimination (military affiliation isn't a protected class for spouses), so employers ghost you or lowball offers.
Career Disruption: Every PCS resets your career. You finally get promoted to manager—then PCS. You build client relationships for 18 months—then PCS. You're always starting over, explaining gaps on your resume, accepting entry-level roles despite years of experience. By 35, you have 10 years of work experience but six different job titles and zero career progression to show for it.
Licensing Barriers: Teachers, nurses, therapists, real estate agents, cosmetologists—35% of military spouses work in professions requiring state licenses that don't transfer. Each PCS means months of paperwork, fees ($500-$2,000), retaking exams, and lost income. Even with interstate compacts (which don't cover all professions or states), there's delay and bureaucracy.
Childcare During Deployments: When your spouse deploys, you're a single parent. Traditional 9-5 jobs don't accommodate emergency daycare closures, sick kids, or school events you must attend alone. Employers say they "support military families" but bristle when you need flexibility during the exact times you need it most.
Underemployment: You have a master's degree but work retail. You managed $2M budgets at your last job but now you're an admin assistant. You're overqualified, underpaid, and stuck because employers won't take a chance on someone who "might leave in two years." 38% wage gap compared to civilian counterparts isn't just a statistic—it's your reality.
The Entrepreneurship Solution
Full Control Over Location and Schedule: You decide where you work (home, coffee shop, co-working space) and when you work (mornings while kids are at school, evenings after spouse gets home, weekends). No commute, no office politics, no asking permission for doctor appointments. PCS to Germany? Your business operates from anywhere with WiFi. Spouse deploys? You adjust your hours without explaining to a boss.
No Employer to Request PCS Leave From: When PCS orders drop, you don't have to quit, give notice, or hope for a reference. You simply continue operating. Your clients don't care if you're in North Carolina or Japan—they care that you deliver results. No awkward resignation conversations, no lost income during the gap between jobs, no starting over at the bottom of a new company.
Income Follows You to Every Duty Station: Your business moves with you. That e-commerce store you built? Still generates revenue whether you're in Virginia or South Korea. Those freelance writing clients? They don't know (or care) that you moved 3,000 miles. Traditional employment means rebuilding income from zero every 2-3 years. Entrepreneurship means compound growth—you're making $60K year 1, $80K year 2, $100K year 3 regardless of ZIP code.
Can Pause During Deployments Without "Quitting": Spouse deploys and you need to focus on kids? Pause new client work, fulfill existing contracts, resume when ready. No resignation, no career gap on resume. E-commerce business? Pause inventory orders, let existing stock sell down. Resume when bandwidth returns. This is impossible with traditional employment—you're either employed or unemployed.
Build Equity That Appreciates: A business you own is an asset. Traditional employment pays you for time worked—when you stop, income stops. A business generates value even when you're not actively working (Amazon FBA, digital products, rental properties). You can sell the business later (3-5x annual profit is typical valuation). You've built something that has value beyond hourly wages.
Military Spouse Preference Doesn't Help Private Sector: Military Spouse Preference only applies to federal jobs (USAJOBS). Private companies have zero obligation to prioritize you. Owning your business levels the playing field—you compete based on your product/service quality, not whether an employer wants to take a chance on a "transient" employee. You set your rates, choose your clients, control your income.
Pro Tip: MyCAA (Military Spouse Career Advancement Accounts) provides up to $4,000 for business certifications like project management, bookkeeping, or digital marketing—all skills that directly support entrepreneurship.
Best Business Types for Military Spouses
Tier 1: E-Commerce (Highest Portability)
Amazon FBA (Fulfillment by Amazon)
- Average income: $30,000-$100,000/year
- Startup cost: $3,000-$10,000 (inventory + tools)
- PCS portability: 100% (Amazon ships everything)
- Time commitment: 10-20 hours/week after setup
- Best for: Product research skills, willing to learn Amazon algorithms
Etsy/Print-on-Demand
- Average income: $20,000-$60,000/year
- Startup cost: $500-$2,000 (design tools, samples)
- PCS portability: 100% (Printful/Printify handle production)
- Best for: Creative spouses, graphic design interest
Dropshipping (Shopify)
- Average income: $25,000-$80,000/year
- Startup cost: $1,000-$5,000 (store setup, ads, samples)
- PCS portability: 100% (no inventory to move)
- Best for: Marketing skills, comfortable with ads
Tier 2: Service-Based Online (High Portability)
Virtual Assistant / Project Manager
- Average income: $35,000-$70,000/year
- Startup cost: $500-$1,000 (software, website)
- PCS portability: 100% (remote clients)
- Best for: Organized, good communicator, tech-savvy
Digital Marketing Agency
- Average income: $40,000-$120,000/year
- Startup cost: $1,000-$3,000 (tools, training)
- PCS portability: 100% (remote clients)
- Best for: Social media skills, analytical mindset
Freelance Writing / Content Creation
- Average income: $30,000-$80,000/year
- Startup cost: $500-$1,500 (portfolio website, tools)
- PCS portability: 100% (remote clients)
- Best for: Strong writing skills, self-motivated
Tier 3: Local Service Business (Medium Portability)
Photography
- Average income: $30,000-$80,000/year
- Startup cost: $5,000-$15,000 (camera, lenses, editing)
- PCS portability: 70% (rebuild client base each move, but skills transfer)
- Best for: Creative, people skills, technical aptitude
Event Planning
- Average income: $35,000-$75,000/year
- Startup cost: $2,000-$5,000 (website, contracts, insurance)
- PCS portability: 60% (military community events at every base)
- Best for: Detail-oriented, vendor relationships, stress management
Fitness Coaching / Personal Training
- Average income: $30,000-$70,000/year
- Startup cost: $1,000-$3,000 (certifications, insurance, equipment)
- PCS portability: 75% (can pivot to online coaching)
- Best for: Fitness knowledge, motivational, comfortable on camera
LLC Setup Strategy: Which State Matters
Why LLC Over Sole Proprietorship
Liability Protection: As a sole proprietor, you and your business are legally the same entity. If a client sues your business, they're suing YOU personally—your house, car, savings are all at risk. With an LLC (Limited Liability Company), the business is a separate legal entity. Client sues? They can only go after business assets, not your personal assets. This matters more as your business grows.
Tax Flexibility: Sole proprietor = you pay self-employment tax (15.3%) on all profit. LLC gives you options: Default to sole proprietor taxation (pass-through), or elect S-Corp status once profit exceeds $60,000/year and pay yourself a "reasonable salary" (subject to SE tax) while taking remaining profit as distributions (NOT subject to SE tax). This can save 3-5% on taxes. Example: $80K profit as sole proprietor = $12,240 SE tax. As S-Corp with $50K salary + $30K distribution = $7,650 SE tax. Savings: $4,590/year.
Professional Image: "Jane Smith Consulting" sounds like a side gig. "Smith Consulting LLC" sounds like a real business. Clients perceive LLCs as more established and trustworthy. When bidding on contracts or applying for business credit, LLC signals you're serious. Banks and vendors take you more seriously when you have formal business structure.
Easier to Sell Business: Sole proprietorship = tied to you personally. Hard to sell because it IS you. LLC = separate entity that can be sold. If you build a successful Amazon FBA business or digital marketing agency, you can sell the LLC to another entrepreneur for 3-5x annual profit. This exit strategy only works if the business is formally structured as a separate entity.
Separate Credit: LLC allows you to build business credit separate from your personal credit. Apply for business credit cards, business loans, vendor net-30 terms using your EIN (not SSN). If business has debt problems, it doesn't tank your personal credit score. If you have personal credit issues, you can still build strong business credit. They're legally separate.
State Selection Decision Tree
| Factor | Wyoming | Delaware | Home State | No State Inc. Tax States |
|---|---|---|---|---|
| Annual cost | $50-$60 | $300 | Varies $50-$800 | $50-$300 |
| No state income tax | ✅ Yes | ❌ No | Depends | ✅ Yes (TX, FL, WA, NV) |
| Privacy protection | ✅ Excellent | ✅ Good | ❌ Limited | Varies |
| PCS continuity | ✅ Never changes | ✅ Never changes | ❌ Complicated with move | ✅ Never changes |
| Legal precedent | Good | ✅ Excellent | Varies | Varies |
| Best for | E-commerce, online | VC-backed, complex | Brick & mortar only | Regional service biz |
Recommended Strategy by Business Type
E-Commerce / Online Business:
- Choose: Wyoming LLC ($50/year, no state tax, privacy)
- Registered agent: Northwest Registered Agent ($125/year)
- Total annual cost: $175/year
Service Business with Local Clients:
- Choose: Home state LLC OR Wyoming LLC + foreign qualification
- Why: May need to do business as "foreign entity" anyway
- Cost consideration: Foreign qualification adds $100-$300/year per state
Real Estate / Rental Property:
- Choose: LLC in property's state (required for liability protection)
- Multiple properties: Consider series LLC (available in 18 states)
Virtual Address Strategy
Why You Need a Permanent Business Address: Your LLC must have a physical address on file with the state—this is where official correspondence, tax documents, and legal notices are sent. Using base housing is a disaster waiting to happen: You PCS, the address becomes invalid, you miss critical state notices (annual report deadlines, tax filings), your LLC gets administratively dissolved, and you lose liability protection. Even off-base rentals have the same problem—you move, address changes, chaos ensues.
Registered Agent vs. Virtual Mailbox:
Registered Agent (Required):
- Every LLC must have a registered agent—a person/company authorized to receive legal documents on your behalf
- Must have physical address in the state where LLC is registered
- Cost: $50-$150/year
- Services: Northwest Registered Agent, Incfile, ZenBusiness
- What they do: Accept service of process (lawsuits), forward annual report reminders, scan/email documents to you
- Best for: Wyoming or Delaware LLC (you're not physically in that state, need someone there)
Virtual Mailbox (Optional but Recommended):
- Physical street address (not PO Box) that never changes
- Service scans mail, uploads to portal, you view digitally
- Can forward physical mail to your current location if needed
- Cost: $10-$30/month ($120-$360/year)
- Services: Earth Class Mail, Traveling Mailbox, Anytime Mailbox
- Best for: Business address for bank, vendors, Google My Business (looks more professional than registered agent address)
Recommended Setup:
- Registered agent in LLC state: $125/year (Northwest Registered Agent)
- Virtual mailbox in tax-friendly state (if different from LLC state): $180/year (Earth Class Mail)
- Total cost: $305/year for permanent, PCS-proof business addresses
Top Services:
- Northwest Registered Agent: $125/year, excellent service, 50-state coverage, privacy protection
- Incfile: $119/year, includes registered agent + business address
- ZenBusiness: $199/year, registered agent + worry-free compliance (reminds you of deadlines)
⚠️ Warning: Do NOT use base housing address for LLC—you'll lose it at PCS and have to update every state filing, bank, vendor, and client.
Tax Implications Across State Lines
State Nexus Rules (Critical for PCS)
What is Nexus? Nexus means you have sufficient connection to a state to create a tax obligation. Physical presence (living there, office there, employees there) creates nexus. This is critical for military spouses because you'll live in multiple states over your business's lifetime.
How nexus works:
- You live in North Carolina (even with Wyoming LLC) = NC can tax your business income because YOU (the owner) are a resident
- You move to Texas (no state income tax) = NC loses the right to tax you, Texas has no state income tax, you keep more money
- Your LLC state (Wyoming) never changes, so Wyoming never taxes you (no Wyoming nexus unless you live there)
Threshold for "doing business": Most states say if you're physically present (living, working, have office) = nexus. Remote work counts—if you sit at your kitchen table in Virginia running your business, Virginia says you have nexus. This is WHY choosing an LLC state with no income tax (Wyoming) is smart—your resident state will tax you regardless, but at least the LLC state won't double-tax you.
Military spouse advantage: Under the Military Spouses Residency Relief Act (MSRRA), you can maintain your home state of residence for tax purposes even when living elsewhere due to military orders. This means if you're from Texas (no state income tax) and move to California with your spouse, you can remain a Texas resident and NOT pay California state income tax. This applies to your business income too—you'd pay Texas rates (zero) even while physically operating the business in California.
PCS Nexus Scenario:
- Year 1: Wyoming LLC, living in North Carolina
- Pay NC state income tax on business profit (you're NC resident)
- Pay no Wyoming income tax (no Wyoming nexus)
- Year 2: PCS to Texas
- Pay no Texas income tax (no state income tax)
- Pay no Wyoming income tax
- Result: Tax savings of 5-7% on all profit
Sales Tax Obligations
E-Commerce Sellers: If you sell physical products online, you're required to collect and remit sales tax in states where you have "economic nexus." Post-2018 Supreme Court ruling (Wayfair decision), economic nexus is typically triggered by $100,000 in annual sales OR 200 transactions in a state. This means even if you're in Wyoming, if you sell $100K+ worth of products to California customers, you must register for California sales tax permit and collect/remit tax.
Good news for e-commerce sellers:
- Amazon FBA automatically collects and remits sales tax in all states for you (they handle it)
- Shopify has built-in sales tax collection tools (you set up once, it auto-calculates)
- Platforms like TaxJar or Avalara automate multi-state sales tax filing ($19-99/month depending on volume)
Filing requirements: Once registered in a state, you file quarterly or monthly (depending on volume) and pay collected sales tax to that state's revenue department. Miss a filing? Penalties are steep ($50-500/month + interest). Automate this or hire a bookkeeper.
Exemption certificates: If selling to other businesses (B2B), they can provide resale certificates—you don't charge them sales tax because they're buying for resale, not personal use. Keep these certificates on file (IRS/state audits will ask for them).
Service Providers: Most services are NOT subject to sales tax—this is the advantage of service-based businesses over product-based. Consulting, coaching, freelance writing, virtual assistant work, bookkeeping, graphic design, photography (digital delivery) are typically exempt from sales tax. You don't collect it, don't remit it, don't file sales tax returns.
Exceptions (services that ARE taxed in some states):
- SaaS (Software as a Service): ~23 states tax SaaS subscriptions (e.g., if you sell a $50/month software tool to customers in Texas, you'd collect Texas sales tax)
- Digital products: E-books, courses, downloadable templates are taxed in ~30 states
- Information services: Some states tax data subscriptions, research services
Consulting generally exempt: If you provide advice, strategy, coaching, or knowledge work, this is almost never taxed. The IRS and states distinguish between "tangible goods" (taxed) and "intangible services" (not taxed). Your brain and expertise = intangible.
When in doubt: Check your state's Department of Revenue website or ask a CPA. Sales tax rules vary widely by state and wrong assumptions can cost you in back taxes and penalties.
Self-Employment Tax (Unavoidable)
- Rate: 15.3% (Social Security 12.4% + Medicare 2.9%)
- Applies to: All business profit after expenses
- No military spouse exemption
- Deduction: 50% of SE tax is deductible on Form 1040
Pro Tip: S-Corp election can save 3-5% on self-employment tax once profit exceeds $60,000/year (reasonable salary requirement).
Spouse-Owned Rental Properties
Why Military Spouses Excel at Real Estate
Advantages:
- VA loan at previous duty station = no money down, low rate
- PCS creates automatic rental property (don't sell, rent it out)
- Military community = reliable renter base
- BAH covers mortgages in many markets = cashflow from day 1
LLC Structure for Rental Properties
Single Property:
- Property address state LLC
- ~$200-$500 setup + $50-$300/year
- Liability protection from tenant lawsuits
Multiple Properties:
- Option A: Separate LLC per property (most protection)
- Option B: Series LLC (if available in state—TX, IL, DE, NV, etc.)
- Option C: Single LLC (least protection, simplest)
Recommended: Series LLC in Delaware or Nevada (protect all properties, simpler than multiple LLCs)
Property Management During PCS
| Option | Cost | Time Commitment | Best For |
|---|---|---|---|
| Self-manage remotely | $0 | 5-10 hrs/month | 1-2 properties, handy, willing to fly back for emergencies |
| Local property manager | 8-12% rent | 1-2 hrs/month | 3+ properties, distant location, peace of mind |
| Hybrid (manager for maintenance only) | $50-100/call | 3-5 hrs/month | 2-3 properties, want control but not 3am calls |
Real Example:
- E-6 spouse: Bought house at Ft. Hood with VA loan ($250K, $1,850/month mortgage)
- PCS to Korea: Rented for $2,200/month (E-7 BAH rate)
- Profit: $350/month after mortgage, taxes, insurance, maintenance reserve
- After 3 years: $12,600 profit + $45,000 appreciation + mortgage paydown
- Total equity gained: $70,000+ while living overseas
Business Banking and Credit
Separate Business Bank Account (Required)
Why it's non-negotiable:
- IRS requirement for LLC tax treatment
- Liability protection (piercing the corporate veil risk if commingled)
- Bookkeeping sanity (QuickBooks connects to business account)
- Professional image (checks say "ABC Consulting LLC" not "Jane Smith")
Best military-friendly business banks:
-
USAA Business Checking (if eligible)
- No monthly fee with $1,000 minimum balance
- Free checks, mobile deposit
- Excellent mobile app for PCS
-
Navy Federal Business Checking
- $10/month or free with $2,500 balance
- 50 free transactions/month
- Compatible with QuickBooks
-
Novo Business Checking (online only)
- $0/month, no minimums
- Integrates with Shopify, QuickBooks
- Virtual cards for online purchases
Business Credit Card Strategy
Step 1: Get business EIN (free from IRS, takes 5 minutes online)
Step 2: Apply for business credit card (builds business credit separate from personal)
Best starter business cards:
- Chase Ink Business Cash: $0 annual fee, 5% back on office supplies, internet, phone (first $25K/year)
- American Express Blue Business Cash: $0 annual fee, 2% back on all purchases (first $50K/year)
- Capital One Spark Cash: $95 annual fee (waived year 1), 2% back unlimited
Pro Tip: Use business credit card exclusively for business expenses = automatic expense tracking + rewards + builds business credit.
Insurance and Legal Protection
Required Insurance
1. General Liability Insurance
- Cost: $300-$600/year
- Coverage: $1M-$2M per occurrence
- Protects from: Client injury claims, property damage, advertising injury
- Get quotes: Hiscox, Next, State Farm Business
2. Professional Liability (E&O) Insurance (if providing services/advice)
- Cost: $500-$1,500/year
- Coverage: Errors, omissions, negligence claims
- Required for: Consultants, coaches, designers, writers
- Get quotes: Hiscox, PIIA, Berkshire Hathaway
3. Business Personal Property Insurance (if significant equipment)
- Cost: $200-$600/year
- Coverage: Camera gear, computers, inventory
- Often: Can add endorsement to renters/homeowners policy
⚠️ Warning: Military housing insurance does NOT cover business equipment. Need separate policy or endorsement.
PCS Business Continuity Plan
180 Days Before PCS
- Update LLC registered agent if needed (should be permanent service, not your address)
- Notify clients of upcoming move (if local services)
- Backup all business files to cloud (Google Drive, Dropbox)
- Update website with "We're moving but still serving clients!" if relevant
90 Days Before PCS
- Forward business mail to virtual address service
- Update business address with:
- Bank
- Credit card
- IRS (Form 8822-B)
- State (if filed in state you're leaving)
- Vendors/suppliers
- If local business: Begin marketing at new location
30 Days Before PCS
- Set up business internet at new location (or confirm mobile hotspot backup)
- Update Google My Business if local business
- Change shipping address for e-commerce
- Notify any recurring clients of temporary availability changes
At New Duty Station
- Register as foreign LLC if required in new state (check state rules)
- Update business licenses if needed (most online businesses = none needed)
- Rejoin local business groups (Chamber of Commerce, BNI, military spouse networks)
- Continue operations without interruption
Real Example: E-6 spouse running virtual assistant business through PCS from Hawaii to Virginia:
- Wyoming LLC = no address change needed (registered agent stayed same)
- Updated IRS address: 10 minutes online
- Notified 5 clients: "Moving but availability unchanged"
- Zero business downtime during entire PCS
Common Mistakes & How to Avoid Them
❌ Mistake #1: Registering LLC in Current State Before Research
Result: Paying 5-9% state income tax on all profit unnecessarily. Moving states = complicated "foreign LLC" filings or dissolution/reformation headache.
Fix: Research state tax implications BEFORE filing. Wyoming or Delaware LLC costs $50-175/year more upfront but saves thousands in taxes over life of business.
❌ Mistake #2: Using Base Housing Address for Business
Result: PCS = invalid business address on all state filings, bank accounts, vendor contracts. Must update 20+ places. IRS/state correspondence goes to old address.
Fix: Use registered agent service ($125/year) or virtual address from day one. Never changes regardless of PCS.
❌ Mistake #3: Commingling Personal and Business Funds
Result: IRS audit nightmare (can't prove business expenses). Lose LLC liability protection (piercing corporate veil). Bookkeeping chaos.
Fix: Separate business bank account and credit card. Pay yourself "owner's draw" or salary. Never pay personal expenses from business account.
❌ Mistake #4: Not Setting Aside Money for Quarterly Taxes
Result: Surprise $5,000-$15,000 tax bill in April + underpayment penalties (6-8% interest).
Fix: Set aside 25-30% of every payment into separate savings account. Pay estimated quarterly taxes (April 15, June 15, Sept 15, Jan 15). Use IRS Form 1040-ES.
❌ Mistake #5: Treating Business Like Hobby (No Bookkeeping)
Result: IRS classifies as hobby = can't deduct expenses = pay tax on revenue, not profit. Audit = penalties.
Fix: Keep receipts (app: Expensify, QuickBooks Self-Employed). Separate bank account. Profit in 3 of 5 years = legitimate business.
Action Steps
This Week: Research & Decide
- Choose business type from Tier 1-3 above
- Research top 3 competitors in your niche (pricing, services, websites)
- Decide: Wyoming LLC ($50/year), Delaware LLC ($300/year), or home state
- Calculate startup costs (inventory, equipment, tools, training)
- Check spouse's GI Bill transferability or MyCAA eligibility (free money for training)
Next 30 Days: Launch
- Register LLC in chosen state ($50-500)
- Get EIN from IRS (free, 5 minutes: irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online)
- Open business bank account ($0-$25)
- Set up bookkeeping (QuickBooks Self-Employed $15/month or Wave free)
- Get business insurance ($300-600/year)
- Build simple website (Shopify $29/month or Squarespace $18/month)
- Create social media profiles (Instagram, Facebook Business Page)
- Make first sale or sign first client
First 90 Days: Systematize
- Create client onboarding system (contracts, invoices, processes)
- Set up automatic invoicing (QuickBooks, FreshBooks, Wave)
- Begin paying quarterly estimated taxes (save 25-30% of profit)
- Join military spouse business groups (Instant Teams, We Serve, MilSpouse Creative+)
- Track metrics: Revenue, expenses, profit, hours worked, ROI
Ongoing: Scale & PCS-Proof
- Quarterly: Review profit, adjust pricing, optimize processes
- Annually: File taxes (use mil-spouse-friendly CPA familiar with multi-state)
- Before PCS: Execute PCS continuity plan (update addresses, notify clients)
- Every 2-3 years: Re-evaluate business model for new location opportunities
Frequently Asked Questions
Q: Can I legally own a business while my spouse is active duty?
A: Yes. You are a separate legal entity from your spouse. No military restrictions on spouse business ownership. Only restriction: If you're a DoD civilian employee, check for conflicts of interest.
Q: Which state should I register my LLC in if we PCS every 2-3 years?
A: Wyoming or Delaware if e-commerce/online business (never changes). Home state if local brick-and-mortar. Avoid states with income tax if you'll move frequently.
Q: Do I need a business license?
A: Depends on business type and state. Most online businesses = no license needed. Local services (photography, event planning) may need city/county business license ($50-200/year). Check city clerk website.
Q: Can I use my spouse's GI Bill to start a business?
A: Not directly for business costs, but YES for training. Transfer GI Bill can pay for business courses, MBA, certifications that help your business. MyCAA provides $4,000 for business-related certifications.
Q: How much can I realistically make as a military spouse entrepreneur?
A: Depends on business type. E-commerce: $30K-$100K/year. Services: $35K-$80K/year. Agency/management: $60K-$150K/year. Part-time (10 hrs/week): $15K-$40K/year. Full-time (40+ hrs/week): $50K-$120K+ realistic after 1-2 years.
Q: What if I PCS to a new state—does my LLC need to move too?
A: No if you registered in Wyoming/Delaware (LLC stays there, you file taxes in new state of residence). Yes if you registered in old home state AND new state requires "foreign LLC" registration (adds $100-300/year cost).
Q: Can I write off home office on base housing?
A: Yes, if you have dedicated space (desk, office area) used EXCLUSIVELY for business. No if you work at kitchen table. Deduction: (office square feet / total square feet) × housing costs. For base housing: Only utilities, not BAH.
Q: What happens to my business during deployment?
A: E-commerce: Can run remotely or pause (restock when back). Services: Notify clients, pause new work, VA can help if needed. Real estate: Property manager handles. Key: Automate or delegate what you can.
Q: Do I pay self-employment tax on business profit?
A: Yes. 15.3% on profit after expenses (Social Security + Medicare). This is in addition to federal/state income tax. No way around it for sole proprietor or LLC. S-Corp election can reduce this once profit exceeds $60K/year.
Q: Should I get a business credit card?
A: Yes. Builds business credit separate from personal. Rewards/cashback. Automatic expense tracking. Liability separation. Start with Chase Ink or Amex Blue Business (both $0 annual fee).
Official Sources
- IRS Business Resources: https://www.irs.gov/businesses/small-businesses-self-employed (Last verified: 2026-01-15)
- SBA Small Business Guide: https://www.sba.gov/business-guide (Last verified: 2026-01-15)
- Military OneSource Spouse Employment: https://www.militaryonesource.mil/spouse-employment (Last verified: 2026-01-15)
- MyCAA Scholarship Program: https://www.myc AA.mil (Last verified: 2026-01-15)
- DoD State Liaison Office (Licensing): https://stateguard.usa.gov/business-licensing (Last verified: 2026-01-15)
Additional Resources:
- Instant Teams (remote work for military spouses)
- Military Spouse JD Network (lawyers)
- Hiring Our Heroes (DOL/Chamber program)
Related Guides
- Military Spouse Employment: Complete Career Strategy - Traditional employment options, MyCAA, Military Spouse Preference for federal jobs
- Military Tax Optimization Guide - State residency strategy, combat pay exclusion, deductions
- State of Residence Tax Optimization - Choosing home state for tax purposes, changing residency
- MyCAA Complete Guide - Using $4,000 for business training, eligible programs, application process
Need personalized tax strategy? Use our Spouse Tax Wizard to calculate your optimal state residency and business structure based on your specific situation.
Last updated: January 15, 2026. Garrison Ledger is an independent resource and is not affiliated with the Department of Defense. All information verified against official sources. Contact support@garrisonledger.com with corrections.