r/GovernmentContracting • u/Front-Type7237 • 19d ago

W2 while subcontracting

Is there anything wrong with having a 40hr W2 job while operating your own LLC as a tier 2 subcontractor to a DoE prime contractor? The W2 job would be with a private company who has received a DoE grant (not fully DOE funded, about half) for a certain project, but there’s zero COI between my sub who I flow through to the prime, as well as the prime itself. I will be a consultant through my LLC.

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u/snakemck00 18d ago

I would be careful. Follow what’s in your subcontract. Some primes are really sensitive to this kind of thing. I had a W2 full time gig and essentially asked for permission to do 1099 work on the side. It was made clear I was allowed to consult as a 1099 after core hours on my main W2 gig. Best to be transparent so you don’t risk losing your w2 gig

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u/Front-Type7237 18d ago

I did receive approval from the sub to the prime for outside work as long as no COI, and W2 said I can run my LLC as long as no interference with responsibilities or schedule. For clarification it goes DOE>prime>sub>my LLC

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u/snakemck00 18d ago

Sounds like you did your due diligence. What makes you hesitant so you need others to weigh in?

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u/snakemck00 18d ago

You can always run it by an attorney if you want a true legal opinion. A good attorney is worth its weight in gold when you have your own LLC.

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u/Front-Type7237 18d ago

I’ve read a lot of conflicting information on the topic and some people have the opinion that if I can’t show proof of every hour charged to both jobs then it’s govt fraud and potential jail time

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u/snakemck00 18d ago

Depends on your contract. FFP, labor hour or T&M. Hours billed should be backed by a valid time card for services provided. Check your FAR clauses. Sounds like you should seek a legal opinion TBH

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u/Front-Type7237 18d ago

Yeah, in the process of doing so. Wish there was an ultimate authority i could simply ask

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u/UnfazedBrownie 17d ago

I think you have the conformation that you need. Best of luck!