Consider that I own a single-member LLC in Virginia.

Must I carry Workers Comp. insurance (in the U.S.) because I pay my wife from time to time?

I ask, because I am under the impression that if a business entity has two or more "employees," it needs to carry the said insurance.

Is there a way to legally avoid paying for Workers Comp. in this situation?

  • Workers compensation insurance is a matter of state law (or admiralty law in the case of maritime ventures). On this particular issue, state law varies considerably from state to state.
    – ohwilleke
    Commented Jun 19 at 14:53
  • Is the LLC owner even considered to be an employee for the purpose of workers comp?
    – littleadv
    Commented Jun 20 at 4:11

1 Answer 1


The requirement is for "more than two", not "two or more".

From Virginia Workers' Compensation Commission:

As a general rule, a business with more than two employees is required to carry workers’ compensation coverage. An employee is viewed broadly under workers’ compensation law and includes part-time, seasonal and temporary workers, minors, trainees, immigrants and working family members.

If she's your only employee, then you have two employees, so you don't need to carry coverage.

  • 2
    They may have 1 employee. Tax-wise, the owner of a single-member LLC cannot be an employee. You have to study the workers comp regulations to see if this applies there as well.
    – user71659
    Commented Jun 19 at 21:32
  • 1
    The FAQ includes "Executive officers also count as employees." Isn't the owner an executive officer?
    – Barmar
    Commented Jun 20 at 15:54
  • 1
    And FAQ#13 addresses LLC members. If they perform work and receive pay, they're considered employees for the purpose of worker's comp.
    – Barmar
    Commented Jun 20 at 15:58
  • The very first sentence of FAQ #13 seems to state the opposite of what you claim. "Under Virginia law, a limited liability company (LLC) is identified as an employee [should read employer?] and a member of a LLC having only one member is not covered under the Act unless they specifically notify the insurer of their election to be covered." A single-member LLC is a special case.
    – user71659
    Commented Jun 20 at 16:29

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