Do LLC Members Need Workers’ Comp?

LLC status by itself does not settle workers’ compensation obligations. State laws can exempt some members when the business has no employees, require coverage for other workers, or allow owners to choose whether they are insured. New York says LLC members with no employees other than the members are among those who do not need coverage, and it separately says owners can include themselves. Do not carry that exception into another state.

Check the workers’ compensation agency in every state where members or employees work. Then review the policy’s named insured, owner inclusion or exclusion endorsements, state pages, and payroll treatment so the issued policy matches your election. An LLC with employees can have a different obligation from a member-only LLC. Do not report a member as a covered employee or exclude them from payroll until the applicable state rule and insurer treatment are clear.