Hello,
Incorporated a Delaware S corp last December (06). HQ in San Jose, CA. Qualified to do business in CA as a foreign corp. Got some work done from a few contractors in India. But I was employed elsewhere. Am thinking of joining the company full time and getting employed. I will be the sole employee to start with.
Do I need workers comp? I know that even if I employ one employee , even on part time basis later on I will need workers comp. I read somewhere that a sole owner employee does not need workers comp - wondering if the same rules apply to an S -corp also.
Appreciate your help and feedback.
Open Tech ,what is it you actually do????? The Name is catchy,I,m also A CET.
Even if it is not mandated by law, maybe it would be a good idea.
I know in Michigan, if the company doesn't have 50 or more employees, it can be a trickey situation wether or not one is even covered under (or a company is required to pay) workers comp insurance.
I would call a lawyer to speak to them about the situation. If you are not required to pay the insurance, it may be a good idea to set up a high yeild company savings account to cover the costs of getting it all set up once you have the number of employees required for you to pay. The balance in that account could also be used to cover any accidents that happen up until the point in time that you are required to carry the insurance.
Open Tech ,what is it you actually do????? The Name is catchy,I,m also A CET.
Hi,
We are Web 2.0 based marketing services company. In other words, we work with our clients (mostly hi-tech right now) to help them implement Web 2.0 based marketing programs - based around the concepts of community, new media, audience participation, etc.
If you want to know more, feel free to PM me and we can set up a call offline.
In the past I have been a number two guy in a company - so while I was privvy to all fiannces, I did not have to deal with setting up the workers comp, govt taxes, etc. I just knew we paid a certain amount and that it was a line item on our P & L. So for me all this is fairly new.
And as I am bootstrapping my company, with very little revenues, I do not want to incur any expenses we don't need. Hence, curently if I can legally avoid paying workers comp. I would like to do so.
Hence this question.
If you are in california unless you are an executive officer of the corporation you would be considered an employee of the corp and the corp would need to purchase work comp coverage for you.
If you are the owner then you are not an employee but an employer and would not need coverage.
Thank you, 1171.
I am an executive officer - I am the Chairman, President and CEO of the corporation. And I am the sole owner - I own 100% of the company right now. So I guess from both perspectives, looks like I do not need coverage.
Thanks , once again.
One word of caution if you are doing work in differernt states, each state has it's own set of laws where WC is concerned. I would suggest you visit the ws of any state your consider doing work/business in and make sure that the same is true for every state as it apparently is in CA.