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Bidding under a different company name to get female/minority business status.

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al.mon

Junior Member
What is the name of your state (only U.S. law)? WA

I am self-employed. My live-in girlfriend quit her job 3 years ago and has been trying to make it on her own, with no success. Every year she comes up with more red ink than the year before. We are in totally unrelated fields.

I have just run into a gig with a government agency in another state that is earmarked for a female or minority business. Is there a problem if I bid on the job under my girlfriend's company, since it is a female owned sole proprietorship and she is a racial minority? I will use my qualifications/experience when bidding and I will do all the work. She will bill them under her business's tax ID and when she is paid will pay me a portion and give me a 1099. At some levels it does not feel right since the female is not doing any of the work herself or is even qualified to do it, but at another level isn't that what business is all about: Sell something (my time) for more than you paid for it?

Keeping this completely above board (no payments under the table), how much of a cut can she keep before it turns into an issue? From a practical standpoint, it makes no difference if she keeps a huge cut and pays all the household expenses, rather than paying me and then I pay the household expenses.

And yes, I am aware of all the issues relating to everything that can go wrong if we split. But if that happens, this one contract will be the least of my worries.
 



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