Of the four ownership categories we cover — sole proprietors, partners, LLC members, and corporate officers — LLC members are the group whose treatment varies the most from state to state. That's partly because the LLC itself is a relatively modern legal structure that blends features of partnerships and corporations, and states haven't converged on a single way to fit it into workers' comp law.
Some States Treat LLC Members Like Corporate Officers
Florida is a good example. Rather than giving LLC members their own separate track, Florida folds them into the same exemption category as corporate officers under Fla. Stat. §440.02. LLC members have to own at least 10% of the company to qualify for exemption, and the same construction-industry cap that applies to corporate officers — a maximum of 3 exempt individuals — applies to LLC members in construction as well. Outside construction, there's no cap on the number of exempt members, but the 10% ownership threshold still applies.
Some States Give LLC Members Their Own Named Rule
Georgia takes a more direct approach: up to 5 members of an LLC can waive coverage on themselves, filed on the same Form WC-10 used by corporate officers, but tracked as its own category under Georgia's statute. Importantly, exempting a member in Georgia doesn't shrink the LLC's headcount for purposes of the state's separate 3-employee mandatory-coverage trigger — an exempted member still counts toward that threshold.
Some States Are Genuinely Ambiguous on the LLC-Specific Question
Texas's core exclusion statute (Labor Code §406.097) names "sole proprietor, partner, or corporate executive officer" as the categories eligible for exclusion from a policy — it doesn't use the term "LLC member" directly. Industry practice generally treats LLC members the same way, by analogy to partners, but if your business is a Texas LLC, this is exactly the kind of gap worth confirming directly with the Texas Department of Insurance or your carrier rather than assuming.
California Splits the Difference
California's Labor Code §3352(a)(17) allows managing members of an LLC to execute a written waiver — similar in mechanism to the waiver available to general partners — filed with the insurance carrier rather than a state agency, effective on the date the carrier accepts it. Working members who take wages but don't manage the LLC are more likely to be treated as regular employees by default under California's broad employee definition.
Why This Category Deserves Extra Care
If you're structured as an LLC, don't assume your state treats members the way it treats sole proprietors, or the way it treats corporate officers — check specifically. The ownership percentage required, whether there's a cap on exempt members, whether the filing goes to a state agency or stays private with your carrier, and whether construction gets separate treatment all vary by state in ways that don't follow a single consistent pattern.
See our state-by-state pages for what we've verified so far, and reach out if your state or situation isn't covered yet — we can help you track down the answer and make sure your LLC's remaining coverage needs are properly handled.