If your Virginia LLC regularly has more than two people who count, meaning three or more, yes, it must carry workers compensation insurance. The twist that catches LLC owners is that Virginia treats an LLC manager as an employee who counts toward the three, even if the manager does no regular work, while an ordinary member who does not work or draw pay generally is not counted. A single-member LLC's one member is not automatically an employee and can choose to opt in. So the question turns on how many managers and workers you have, not just your payroll.
Who this is for: Owners of a Virginia LLC, whether a single-member LLC with no staff, a manager-run LLC, or an LLC running a payroll of W-2 employees.
The short version
- An LLC must carry workers comp once it regularly has more than two counted people, meaning three or more.
- An LLC manager counts as an employee toward the three, even without regular work; a plain member who does no work and takes no pay generally does not.
- A single-member LLC's one member is not automatically counted and may opt in through the carrier.
- Once the LLC must carry coverage, a manager who does not want it can reject coverage using Commission Form 16A.
- Clients and general contractors routinely require proof of coverage before your LLC can start work.
How Virginia treats LLC members and managers
Virginia draws a line between a member and a manager. A person named to manage the LLC under the articles of organization or operating agreement is treated as an employee and counts toward the more-than-two threshold, even if they do not perform regular work. A member who is not a manager and does no work for pay is generally not viewed as an employee, but a member who does perform work or earns pay for it becomes a covered employee. The single member of a one-member LLC is a special case: not automatically counted, and free to elect to be included by telling the carrier. Once the LLC crosses the line and must carry a policy, a manager who would rather not be covered can file a rejection with the Commission on Form 16A, and a manager who takes no regular salary and files that rejection is not counted toward the three.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no employees | No | Not counted; you may elect to cover your own injuries |
| Two managers or members, no other staff | No | Under the more-than-two line; you may still elect coverage |
| Three or more managers, no other staff | Yes | Managers count toward the three; each may reject on Form 16A |
| Any LLC with three or more counted workers | Yes | Employees are covered; a subcontractor's workers count too |
Electing in, or filing to reject
Because members and managers are handled differently, an owner-run LLC has choices to make. If you want your own on-the-job injuries paid by comp, a member elects to be included through the carrier, and a manager simply stays on the policy. If a manager would rather keep their pay out of the premium, they file the Form 16A rejection with the Commission once the LLC has valid coverage, and rely on other insurance for their own injuries. 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. Remember that a subcontractor's employees count toward your three, so an LLC that uses subs can be required to carry even with a small in-house crew.
An Alexandria example
Illustrative, not a quote. A two-member electrical contracting LLC in Alexandria runs the business with one W-2 apprentice, and both members are named managers who work in the field pulling wire. Virginia counts the two managers and the apprentice, which is three, so the LLC is over the more-than-two line and must carry a policy. Because the members do hands-on work, they keep themselves on the policy rather than reject coverage, so all three are protected. When a builder requires proof of coverage, the LLC produces a certificate the same day, and if a member or the apprentice is hurt pulling wire, the injury is covered and the LLC keeps its legal protection. We make sure the electrical work is rated correctly so the price is fair. See our workers comp for electricians page.
Real questions Virginia owners ask
Does my Virginia LLC have to carry workers comp?
Once it regularly has more than two counted people, meaning three or more, yes. Managers count toward the three even without regular work, and a subcontractor's workers count too, so LLCs cross the line quickly.
Am I counted as an LLC member or manager in Virginia?
It depends on your role. A manager named under the operating agreement is counted as an employee, even without regular work. A plain member who does no work and takes no pay generally is not counted.
Do I need comp for a single-member LLC with no employees?
No. With no employees and just you, Virginia does not require a policy. You are not automatically an employee, but you may elect to cover your own on-the-job injuries through the carrier if you want that protection.
When does my LLC have to carry coverage?
Once it regularly has more than two counted people, meaning three or more. Managers count toward that number, and a subcontractor's employees count too, even when the sub carries its own coverage.
How do I leave myself off the policy as a manager?
Once the LLC has a valid policy, a manager files a rejection of coverage with the Commission on Form 16A. A manager who takes no regular salary and files that rejection is also not counted toward the three.
Does having W-2 employees change things for my LLC?
Yes. Employees count toward the more-than-two threshold, so a few of them makes coverage mandatory. The policy covers your employees and protects the LLC, so an injured worker generally cannot sue the business directly.
Why do clients ask my LLC for proof of coverage?
General contractors, landlords, and commercial customers require proof to manage their own risk. Even when you have covered everyone required, you usually cannot start the job without showing a certificate first.
Why Virginia owners choose Morrow
- We shop the right market for you. In Virginia you buy workers' comp on the open market from any private carrier licensed in the state, because there is no state fund, and if no carrier will take you the NCCI-run assigned risk plan (the Virginia Workers' Compensation Insurance 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 Virginia guides
Every Virginia 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 Virginia (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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Virginia electrician workers comp
This guide is general information, not legal advice. Virginia rules and penalty amounts can change, so verify current requirements with the Virginia Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.