Just filed the articles for my Ohio LLC last week. It's a one-person operation for now, but I'm bringing on a part-time helper in a month or so. The BWC stuff is confusing me. Do I need coverage if I'm the only member? And what happens when I hire someone? I've read the website three times and still feel dumb.
Workers Comp
I formed an Ohio LLC and now need to figure out workers' compensation
Ohio is weird. Sole member LLC can opt out of BWC for themselves, but the moment you have an employee you need it. i'd just call the BWC and ask, they're actually helpful on the phone.
Calling worked for me. They set up my policy in about 15 minutes. I didn't need to hire anyone though, so no clue on that part.
Wait, you can opt out as a sole member? I got a letter saying I had to do something. I just ignored it. Should probably check on that.
penguin, thanks, that's the first time I've heard about the opt-out. Do I actually have to file pape rwork for that or is it automatic? Also the part-time thing is basically 15-20 hours a week if that makes a difference.
You have to file a form to opt out of coverage for yourself. I think it's called an exemption. But you can't opt out for employees. Part-time or full-time do esn't matter in Ohio as far as I know.
I had a part-time helper for two years and BWC never said boo. Not saying that's right, just saying they didn't come knocking.
That's bad advice, even if you got away with it. If that helper gets hurt, your LLC is exposed. Just get the policy.
Agreed. BWC premiums for a low-risk office-ish job aren't that bad. I pay more for coffee every month.
So does the helper need to be an actual W-2 employee, or can I 1099 them and skip all this? I've been thinking about picking up some extra help too.
1099 doesn't automatically exempt you. If they work under your direction and you control the work, BWC can still consider them an employee. The test isn't just paperwork. Might be worth a quick call to your liability carrier too.
Okay, I'm going to call BWC and ask about the exemption form and what happens when I add the helper. Thanks all. spookyaction, noted on the exposure thing.