Starting a Business After Military Service: The Federal Contracting Path (2026)
Transitioning service members can leverage their veteran status to win federal contracts through SDVOSB set-aside programs. The path involves forming a business entity, registering on SAM.gov, obtaining SDVOSB certification through SBA VetCert, and then competing for contracts. The entire process from business formation to first bid can be completed in 60-90 days.
TL;DR
- You can form your business before separation, but certify after discharge
- Path: form entity → SAM.gov → SDVOSB cert → find contracts → bid
- Total timeline: 60-90 days from formation to bid-ready
- All government registrations and certifications are free
- Free resources: Boots to Business, PTAC/APEX, SCORE, Waypoint
The 90-day roadmap
[EXPAND] Month 1: Form entity, get EIN. Month 2: SAM.gov registration. Month 3: VetCert + first bids.
Choosing your business structure
[EXPAND] LLC is most common. Simple, flexible, protects personal assets. Formation costs $50-500 by state.
Translating military experience to NAICS codes
[EXPAND] Map your MOS/rate/AFSC to relevant NAICS codes. Examples for common specialties.
Free resources you should use
[EXPAND] Boots to Business, PTAC/APEX Accelerators, SBA SCORE mentors, Waypoint.
Common mistakes to avoid
[EXPAND] Starting before entity is formed. Paying for free services. Choosing wrong entity type. Not getting SDVOSB if eligible.
Transitioning out? Waypoint is free for service members.
Free tool from Waypoint by GreyLee Services Group
Frequently Asked Questions
When should I start my business — before or after separation?
You can form your business entity before separation, but you cannot bid on contracts or apply for SDVOSB certification until after your discharge date. Many service members form their LLC and begin SAM.gov registration in the last 90 days of service.
What resources are available for transitioning service members starting a business?
SBA Boots to Business workshops (through TAP), PTAC/APEX Accelerator counselors (free, one-on-one advising), SBA SCORE mentoring, and Waypoint (free for verified service members). All of these are free.
Do I need money to start federal contracting?
Business formation costs vary by state ($50-500). SAM.gov registration, SDVOSB certification, and VetCert are all free. Your main investment is time — plan for 60-90 days from formation to first bid capability.
What types of businesses work best for federal contracting?
Professional services (IT, consulting, management, engineering), construction, logistics, and maintenance services have the most SDVOSB set-aside opportunities. Choose NAICS codes that match your military experience.
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About the author
Kevin Colahan
Partner, GreyLee Services Group LLC
Kevin Colahan is a Partner at GreyLee Services Group LLC, a Service-Disabled Veteran-Owned Small Business (SDVOSB) based in Collingswood, NJ. He built Waypoint after experiencing the federal certification process firsthand and seeing how many veteran business owners get stuck on SAM.gov paperwork that should be straightforward. He focuses on federal contracting technology and making government systems accessible to small businesses.
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