You may be required to provide workers' compensation for members or managers of your Limited Liability Company (LLC). Use the questions below to figure out the requirements for your LLC.
Does your LLC have any managers?
No?
Then generally members are excluded, unless management rights are restricted to certain members. If management of the company is restricted to certain members, only those members are excluded from coverage. If you have any members working for your LLC that aren't excluded from coverage you must set up a workers' compensation account.
Yes?
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Are all of the managers related by blood or marriage within the third degree? Third degree refers to: parents, children, grandchildren, brothers, sisters, grandparents, great-grandchildren, nephews, nieces, uncles, aunts, and great-grandparents.
No?
Then up to 8 maximum of the managers who are also members of the LLC and who exercise substantial control in the daily management of the company are excluded from coverage. Individuals with substantial control can sign contracts and legal documents, and buy and sell property on behalf of the LLC.
No more than 8 members who are also managers may be excluded (any members only or managers only must have workers’ compensation coverage).
If you have any members or managers working for your LLC that aren't excluded from coverage you must set up a workers' compensation account.
Yes?
All managers who are also members in the LLC and are also related within the third degree are excluded from coverage.
If you have members or managers working for your LLC that aren't excluded from coverage you must set up a workers' compensation account.