If your Georgia LLC has three or more people regularly working in it, yes, it needs workers compensation; if it is just members with no other staff, it usually does not, but there is a twist. In Georgia an LLC member counts as an employee by default and is included in coverage unless that member files a rejection form to opt out.
Who this is for: Georgia LLC owners, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 employees.
The short version
- Three or more people in service means a policy is required (O.C.G.A. section 34-9-2), whether they are members, employees, or a mix.
- Members are covered by default. Georgia treats an LLC member as an employee unless the member opts out on a rejection form (Form WC-10).
- Up to five members can opt out. An LLC cannot exempt more than five members from covering their own injuries (O.C.G.A. section 34-9-2.1).
- Opting out does not lower your count. A member who rejects coverage still counts toward the three-employee test.
- Employees always get covered. Any non-owner employee is covered from day one once the LLC is subject.
How Georgia treats LLC members
This is the part owners get wrong. In Georgia an LLC member is included as an employee by default, which is the opposite of how sole proprietors and partners are treated. A member who does not want their own injuries on the policy has to affirmatively opt out by filing a rejection form (Form WC-10) with the insurer, or with the State Board of Workers Compensation if there is no insurer. Up to five members can opt out this way. Two things surprise people. First, opting out does not remove that member from the three-employee count, so a three-member LLC where all three opt out is still a subject employer. Second, if that LLC has no other employees, it can end up subject to the Act with no one actually covered on the policy, which is a common underwriting trap.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no employees | No | One member is below three; you may still buy a policy to meet contract demands |
| Two members, no other staff | No | Two is below three; members are covered by default if you do buy |
| Three or more members, no other staff | Yes | Subject at three; members are covered unless up to five opt out on Form WC-10 |
| LLC with non-owner employees reaching three total | Yes | Employees covered from day one; members may opt out but still count |
Covered by default, or opting out
Because members start out included, an owner-run LLC gets to decide. If you want your own on-the-job injuries paid by comp, do nothing and stay on the policy. If you would rather keep member pay out of the premium, file a rejection form for up to five members and rely on other coverage, such as health insurance and disability, for your own injuries. Many owner-run LLCs that also employ staff keep the employees on the policy and opt the members out, which lowers the premium while still protecting the business from an employee-injury lawsuit. The limited liability in an LLC shields your personal assets from many business debts, but it does not by itself answer an injured employee, which is exactly what comp is built to handle.
A Savannah example
Illustrative, not a quote. A two-member cleaning LLC in Savannah hires a third worker to keep up with demand. That third hire pushes the business to three people regularly in service, so Georgia now requires a policy. The two members can each file a rejection form to keep their own pay out of the premium, but they still count toward the three, so the LLC stays subject and the new employee must be covered from day one. When a property manager asks for proof of coverage before a contract, the LLC produces a certificate the same day. See our workers comp for cleaning businesses page.
Real questions Georgia owners ask
Does my Georgia LLC need workers comp?
Once three or more people work in the LLC regularly, yes, whether they are members, employees, or a mix. With one or two people the state does not require it, though a client or contract might.
Are LLC members covered by default in Georgia?
Yes. Georgia treats an LLC member as an employee who is included on the policy unless the member files a rejection form to opt out. This is the opposite of how sole proprietors and partners are treated.
How do LLC members opt out of coverage in Georgia?
Each member files a rejection form, Form WC-10, with the insurer, or with the State Board of Workers Compensation if there is no insurer. Up to five members per LLC can opt out this way.
If my members opt out, does that drop me below three?
No. A member who opts out still counts toward the three-employee test. A three-member LLC where all three opt out is still a subject employer under the Act.
My LLC has only members and no staff. Do I need a policy?
If there are three or more members, the LLC is subject, though the members can opt out of covering themselves. With one or two members and no other staff, the state does not require a policy.
Does my single-member LLC need workers comp in Georgia?
Not by state law, because one member is below the three-employee trigger. You may still buy a policy, sometimes an owner-only policy, when a client or general contractor requires proof of coverage.
Do I have to cover employees if my members opt out?
Yes. Opting out only removes the members from covering their own injuries. Any non-owner employee must still be covered from their first day once the LLC is subject at three or more people.
Why Georgia owners choose Morrow
- We shop the right market for you. In Georgia you buy workers' comp on the open market from any private insurer licensed in the state, because Georgia has no state fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed fallback, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Georgia guides
Every Georgia business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Georgia (start here)
- Workers comp: the owner's overview
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Georgia cleaning business workers comp
This guide is general information, not legal advice. Georgia rules and penalty amounts can change, so verify current requirements with Georgia State Board of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.