How do I get exempt from Workers Comp without forming myself as a Corporation?

linked2gether

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I have a small pressure washing business in Land O Lakes, Fl. Recently I had put in a proposal and in order to get the job, I have to be exempt of Workers Comp. One requirement to be exempt is that you have to be registered and active as a Corporation or LLC. I am a one man operation and do not qualify for a Corporation and Im not sure about an LLC but I believe also the requiremnts are that you have to have employees is it not? Understanding that the customers company does not want to be audited or liable for any injuries I would like to find some way to be exempt from Workers Comp so I can land the job. Does anyone have experience with this? Please help.
 
You can file as an individual LLC, you don't need employees to do that. You have to file the exemption with the state. Check with your general liability insurance carrier (if you even have it) and they can point you in the right direction.
 
In Arizona, it is really easy, since they don't want business owners being covered by workmens comp. Just file a letter.
However, there will be some people that are dishonest that will try and get out of paying you without a workmens comp certificate on file. Just a word of warning.
 
In Florida you can file an exemption for a sole prop as long as you dont use ladders or go on roofs. If you do then you can only file for an exemptio as a corp or llc. Kinda weird but thats the case. pay as you go w.c. insurance is usually a min of 3500 per year for one man operation here not to bad. better to have it...trust me. Go to the division of wormans comp office in your county to file for exemption. .but there going to make you sign an affidavit that states you do only flat work. Dont get caught on a roof with an exemption as a sole prop..its a .in 1000 fine and a stop work order until the audit is done. I have been spot checked 3 times down here..I hear of others that have never been checked I 25 years of business
 
You can be a corp with only one employee. Become an S-Corp then the profits are treated more like an individual as well as providing some personal protection vs being a sole proprietor.
 
In Arizona, it is really easy, since they don't want business owners being covered by workmens comp. Just file a letter.
However, there will be some people that are dishonest that will try and get out of paying you without a workmens comp certificate on file. Just a word of warning.

I'm covered on mine Scott, your correct they don't want me on it. They also don't believe my income, I fall under the minimum. When they audit me they always want to ask question that are not relative to policy.

People do not realize those customer who will not pay you actually have good reason not to and I actually like it. If your not covered it means they are responsible. The reason I like the law is because reporting on part time and new employees its legal to not list them for trial or part time period because if they get hurt they are covered regardless.

I imagine you don't do quarterly reporting any longer because the amount you pay would choke a horse.

Reminds me of the days I owed the IRS 750,000 in a single year. Since that year I make nothing and own nothing.

I'm curious how this Obama care will affect us. I realize under 50 won't matter. I just don't believe it!!!

Fortunately before penalties are imposed ill be gone. Coming up on my 13 Month mark and 29 birthday. Wow the time flew and to think it the last three years we have sold our largest agreements and frankly I'm finally feeling the it's time to slow down for the first time in 29 years. We did it with two less sales people and three less on support.

Don't sign the exception it's just like saying don't hire me!!! I take a lot if smaller accounts from the guy who had relation but they hired me because of internal policy.

In my state everyone is actually covered, it will be retroactive if you don't have it and need it. The state will seek the money from all party's. The owner filing the exception is the only person not covered. But that doesn't matter because the Property owner will pay in Arizona. You hire someone without workers comp and they show you a waiver you just gave them the go ahead to collect on your home owners or liability insurance.

Next the stupid thing is our workers comp has limits, when you engage in other insurance the sky's the limit. Not having workers comp is just plain stupid. Using someone without it is worse!!!

If you want to argue any of this please don't. Keep running around without it, you have just been lucky or don't realize you loose customers.


Text me anytime for question 480-522-5227 Milwaukee event may 22 free free free free free
 
In Florida you can file an exemption for a sole prop as long as you dont use ladders or go on roofs. If you do then you can only file for an exemptio as a corp or llc. Kinda weird but thats the case. pay as you go w.c. insurance is usually a min of 3500 per year for one man operation here not to bad. better to have it...trust me. Go to the division of wormans comp office in your county to file for exemption. .but there going to make you sign an affidavit that states you do only flat work. Dont get caught on a roof with an exemption as a sole prop..its a .in 1000 fine and a stop work order until the audit is done. I have been spot checked 3 times down here..I hear of others that have never been checked I 25 years of business

Nick, you stay pretty busy down there?
 
I keep workers comp I do a lot of commerical brick cleaning on new construction, but I'm trying to get more house washing and roof cleaning and it is really picking up this year. When I talk to people about it I carry a copy of my insurance cert. and show them that I have workers comp and I tell them if by chance I get hurt that I'm covered and they will not be liable and it is very effective.
 
Yes, we have had a big boost in residential this year. Its starts to slow down after may every year.

Thats good to hear.
How long does it slow down for? I thought being able to work year round it wouldn't get slow at all lol.
 
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