CAN YOU OWN A BUSINESS IN THE MILITARY?
Active duty service members are allowed to start and operate businesses while in the military; however, while there may be nothing prohibiting your venture, there are guidelines you’ll need to follow.
Anyone looking to follow their entrepreneurial spirit is free to do so but the American Armed Forces are still going to influence how you are able to operate your company.
There is still a large separation of government interference with the free market but there are certain guidelines prohibiting activities that go against military guidelines you’re bound to follow.
If you’re getting your venture off the ground but are still serving our nation, keep reading to learn more about operating a business while still in the military.
The Guidelines for Owning a Business While In the Military
Owning a business while in the military is possible, but there are a few core guidelines everyone must follow—the Department of Defense's (DoD) Joint Ethics Regulation (JER) and the Code of Federal Regulations (CFR):
- The DoD JER sets the stage for how to act ethically as an employee of the Defense Department. Since 1996, it has been setting the standard of acceptable behavior, rules, and ethical benchmarks for DoD employees. This includes guidelines for when you leave the DoD.
- CFR is a widespread collection of guidelines that apply to federal employees and will apply to anyone serving their nation and owning a company.
Both of these guidelines, as well as the laws of where your business is operating, in addition to the Uniform Code of Military Justice (UCMJ), are pretty standard beyond owning an enterprise.
Basically, you’re going to have to act with honor, integrity, and in an ethical manner, as you would for non-transactional behaviors, while serving in the U.S. military.
Notable Things to Avoid
If you’re worried about breaking the guidelines set before you while owning a business in the military, it’s less complicated than it might seem.
You’re going to want to act with integrity and simply abide by the ethics set forth before the military in your everyday life.
Furthermore, it’s worth noting that these guidelines also apply to any active duty service member working in a civilian job, whether or not they own the place.
Therefore, you’re likely already aware of what needs to be done, what should be avoided, and how to conduct yourself.
Still, there are a few notable things you’ll want to avoid as a business owner, including the following:
- You’re a government employee and cannot use this position to advance the interests of your business. For example, you can't state that you are a lieutenant in the Army to make a sale.
- Service members are not allowed to use their uniforms or the logos belonging to the military in business promotions. Basically, anything that would look like the military endorses your business is a no-go.
- Be careful who you are partnering with. Conducting business with foreign nationals or anyone at all who has a seedy history or less-than-favorable reputation can cause issues with your security clearance.
Duty Before Business While Serving
Beyond specific guidelines all service members must follow, if you’re operating a business and it interferes with your duty, expect some issues.
While serving, the needs of the military come first, and anyone who owns a business is going to need to have measures in place so that their company can operate while they are away.
This includes things like deploying overseas, mandatory training, exercises, etc.
The U.S. military will take action against business owners who may feel the needs of their venture are more important at the moment, so be sure to take this into consideration.
Owning a business while in the military can be a challenging, yet rewarding experience. So long as you have the right support in place and follow the rules, your enterprise will be good to go.
Sources:
Ethics Laws and Regulations, DoD Standards of Conduct Office. Accessed August 2024. https://dodsoco.ogc.osd.mil/Ethics-Program-Resources/Ethics-Laws-and-Regulations/
Code of Federal Regulations, National Archives. Accessed August 2024. https://www.ecfr.gov/
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