Limited Libility Company ??

GL2 · 01-06-2006, 05:51 PM

I wondering if two guys form a LLC to do construction, do they have to have worker comp Ins. on each other?

I know you don't in a S-Corp. if your both officers. I own co-own a S-Corp, but I want to get out of that and do a LLC.
Last time I had a attorney do my Articies of Incorpatation, and it wasn't cheap.
Seems like I might be able to do the LLC paper work on my own.
Thanks for any help you can give me.
I'm gonna go surf for some info, but thought I'd tap this resource first.

GL2

skybuster · 01-06-2006, 07:58 PM

I had an LLC in Oregon, and now one in Washington. First LLC had 3 total partners and we didn't pay any work comp on each other. The new LLC now is just 2 of us and we don't pay comp.

I did the paperwork myself both times, with the aid of my accountant.

Coastalfisherman · 01-06-2006, 08:08 PM

If you do a web search for LLC and Oregon there is a page where you pay a small fee and set up an LLC in about 15 minutes. I did it for my guide business. There is also lots of other information on the site.

RvW · 01-06-2006, 10:42 PM

I just went through all the study courses and the test in Oregon again. Sure is a lot different than back in the early 90s. My answer is based on the info you provided.

A simple answer to your question is: Probably not.
If you have one partner, and no employees, you are not required to have a workers compensation policy as long as your partnership is registered with the Oregon corporate division. Below are the examples of when you DO need to register as non-exempt, which means you will have employees and will be required to purchase a comp policy. Ive highlighted the section that I assume applies to you.

For more info, google "Oregon construction contractors board" And click on OAR

Remember, exempt means you dont need a policy...non-exempt means you do. Your "partner" is NOT an employee as long as your partnership is registered with the Oregon corporate division.

Oregon Administrative Rules (OAR) 812-003-0250

Exempt and Nonexempt Class of Independent
Contractor Licenses
Contractors shall license as either nonexempt or exempt as
provided in ORS 701.035.
(1) The nonexempt class is composed of the following
entities:
(a) Sole proprietorships with one or more employees;
(b)Partnerships or limited liability partnerships with
one or more employees
(c) Partnerships or limited liability partnerships with
more than two partners if any of the partners are not family
members.
(d) Joint ventures with one or more employees;
(e) Joint ventures with more than two joint venturers if
any of the joint venturers are not family members;
(f) Limited partnerships with one or more employees;
(g) Limited partnerships with more than two general
partners if any of the general partners are not family
members;
(h) Corporations with one or more employees;
(i) Corporations with more than two corporate officers
if any of the corporate officers are not family members;
(j) Trusts with one or more employees; or
(k) Trusts with more than two trustees if any of the
trustees are not family members.
(2) The exempt class is composed of sole proprietors,
partnerships, joint ventures, limited liability partnerships,
limited partnerships, corporations, trusts, and limited
liability companies that do not qualify as nonexempt.

GL2 · 01-07-2006, 12:31 PM

Row V. Wade,
Thanks a ton. Thats what I was looking for.

Send me a bill!

Thanks again, I'm getting more dialed in now.

GL2