Requirements
Is workers’ comp required for an LLC with no employees?
Workers’ compensation is regulated state by state, so there is no single national answer. Below is how the rules generally work for owner-only businesses, a quick reference for several large states, and the situations where owners choose to buy coverage even when it is optional.
The general rule for owner-only LLCs
Workers’ compensation laws require coverage for employees. Owners are treated differently. New York’s Workers’ Compensation Board, for example, says coverage is not required for partnerships, LLCs and LLPs that have no employees, because members and partners are not considered employees for this purpose — but they may voluntarily cover themselves. California similarly requires coverage once a business has one or more employees, while a sole proprietor may choose to cover themselves.
Once you have an employee, the picture changes quickly. New York requires coverage for LLCs with employees including part-time, borrowed and leased employees, family members and volunteers.
Requirements in key states
Thresholds vary widely. This table summarizes general rules from state agencies and a 2026 state-by-state summary; check your state’s agency for exceptions, especially for construction and agriculture.
| State | General rule |
|---|---|
| California | One or more employees. Roofers need coverage even with no employees. |
| New York | Any employees, including part-time, family and volunteers. Not required for owner-only LLCs. |
| Florida | Non-construction: 4+ employees, counting corporate officers and LLC members. Construction: 1+ employee, including owners. Agriculture: 6 regular or 12 seasonal workers. |
| Texas | Optional for most private employers. Employers that opt out must notify employees and the state. |
| Georgia | 3 or more employees |
| North Carolina | 3 or more employees |
| Alabama | 5 or more employees |
| Ohio, Washington, North Dakota, Wyoming | Monopolistic states: coverage is bought from the state fund, not private insurers. |
Situations that change the answer
Even owner-only businesses should check these carefully:
- Construction and roofing: several states, including Florida and California, apply stricter rules.
- Part-time, seasonal and family workers often count as employees.
- Independent contractors who are really employees under your state’s test can be counted, and misclassification can bring penalties and back premiums.
- Uninsured subcontractors: in some states, a contractor can be responsible for an uninsured subcontractor’s injured workers.
- Corporate officers: corporations are treated differently from LLCs in many states, and officers may count as employees unless they file an exemption.
Why owner-only businesses sometimes buy it anyway
Contracts are the most common reason. General contractors, property managers and corporate clients often require proof of workers’ compensation from every vendor on site, even a one-person business. Without coverage, some general contractors will not hire you, or they will charge you for the premium their own insurer bills for uninsured subcontractors at audit.
Personal protection is the other reason. Your health insurance may not cover work injuries in every case, and workers’ compensation can pay medical costs and a portion of lost wages. If you elect to cover yourself, the policy is typically priced on a payroll figure for owners set by state rules.
Some owners instead obtain a state exemption certificate or a minimum-premium policy to satisfy a contract. Which option is available depends on your state and the client’s requirements.
Penalties for going without required coverage
States enforce these rules with fines, stop-work orders and personal liability for injured workers’ medical costs and lost wages. In Texas, where most private employers can opt out, those that do lose certain legal protections and must notify employees and report qualifying injuries. If you are unsure whether you are required to carry coverage, ask your state workers’ compensation agency before you hire.
Frequently asked questions
Do I need workers’ comp if I am self-employed?
Usually not for yourself, if you have no employees. Most states let sole proprietors and LLC members choose whether to cover themselves. Construction trades in some states are an exception.
Do part-time employees count toward workers’ comp requirements?
In many states, yes. New York, for example, requires coverage for part-time employees, family members and volunteers.
Can I get workers’ comp for just myself?
Often, yes. States such as New York and California allow owners to voluntarily cover themselves. Florida allows non-construction sole proprietors and partners to elect coverage.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.