If your Washington LLC has any non-owner workers, yes, it must carry workers compensation, and it buys that coverage only from the state fund at the Department of Labor and Industries (L&I). The part that trips owners up is how the members themselves are treated: Washington leaves LLC members off the policy by default and lets them opt in, rather than covering them automatically. Exactly which rule applies depends on whether your LLC is run by its members or by managers, so the way you set the business up changes the answer for the owners.
Who this is for: Owners of a Washington LLC, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 workers.
The short version
- An LLC with any non-owner worker must open an L&I account and cover that worker from the first hour.
- Members are left off the policy by default; there is no automatic owner coverage in Washington.
- A member-run LLC treats members like sole proprietors or partners; a manager-run LLC treats manager-members like corporation officers.
- The manager-member exemption is capped at eight owners, or any number if all of them are close relatives.
- Any member who wants coverage for their own injuries files the state elective-coverage form to opt in.
How Washington treats LLC members
Washington does not lump every LLC together. If your LLC is member-managed, the members are treated the way a sole proprietor or partner is: left off by default, not counted as workers, and free to elect coverage for themselves. If your LLC is manager-managed, the manager-members are treated like corporation officers instead, which brings a limit: a company can exempt up to eight qualifying owners, or any number of owners if every one of them is related by blood within the third degree or by marriage. Either way the members start out off the policy and pay no premium unless they opt in. The moment the LLC has a non-owner worker, though, that worker must be covered from the first hour.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no workers | No mandatory premium | The member is left off by default and can file to elect their own coverage |
| Multi-member, no other staff | No mandatory premium | Members are off by default; each can elect coverage; a manager-run LLC caps electing owners at eight unless all are relatives |
| Any LLC with non-owner workers | Yes | Workers covered from the first hour through L&I; members still opt in for themselves |
Opting in, or staying off
Because a Washington LLC member starts out off the policy, the choice is whether to opt in. If you want your own on-the-job injuries paid, you file the state's elective-coverage form and start reporting your hours; if you would rather rely on your own health and disability cover, you do nothing and stay off. Many owner-run LLCs that hire staff cover the workers and leave the members off, then revisit it if an owner is doing risky field work. Remember that the limited liability in an LLC shields your personal assets from many business debts, but it does not answer an injured worker, which is exactly what the state fund is built to handle. And because the state fund does not defend lawsuits, adding stop-gap employers liability to your general liability policy is worth a look.
A Bellevue example
Illustrative, not a quote. A two-member electrical contracting LLC in Bellevue is member-managed and runs the business with one W-2 apprentice. Because the LLC has a non-owner worker, it opens an L&I account, and the apprentice is covered from the first hour. Both members work in the field and want their own injuries covered, so each files the elective-coverage form to opt in and reports their hours. When a builder asks for proof the business has an active L&I account, the LLC can show it the same day. See our workers comp for electricians page.
Real questions Washington owners ask
Does my Washington LLC have to carry workers comp?
If it has any non-owner workers, yes, from the first hour, bought through the L and I state fund. If it is only members, there is no mandatory premium, though members can elect their own coverage.
Am I covered as an LLC member in Washington?
Not by default. Washington leaves LLC members off the policy and lets them opt in, the opposite of many states. You file the state elective-coverage form if you want your own injuries covered.
Does it matter if my LLC is member-managed or manager-managed?
Yes. A member-managed LLC treats members like sole proprietors or partners, and a manager-managed LLC treats manager-members like corporation officers, which caps how many owners can be exempt at eight unless all are close relatives.
Do I need coverage for a single-member LLC with no workers?
There is no mandatory premium if you have no workers. The member is left off by default. You can file to elect your own coverage if you want the state fund to pay your on-the-job injuries.
How do I get coverage for myself as a member?
You file the state's elective-coverage form to opt in, then start reporting your work hours. Until you do that, you are off the policy and the state fund would not pay your own injuries.
Does having W-2 workers change things for my LLC?
Yes. Even one non-owner worker makes coverage mandatory from the first hour. You open an L and I account and report that worker's hours, while members still decide separately whether to opt in.
Are LLC members treated the same as a sole proprietor in Washington?
For a member-managed LLC, yes, both are off by default and opt in. A manager-managed LLC treats manager-members like corporation officers, which adds the eight-owner cap unless everyone is related.
Why Washington owners choose Morrow
- We shop the right market for you. In Washington, workers' compensation is sold only through the state fund at the Department of Labor and Industries (L&I), with no private carriers to shop, so we help you open and run your L&I account correctly and place the stop-gap employers liability and other business coverages the state fund does not include.
- 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 Washington guides
Every Washington 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 Washington (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
- Washington electrician workers comp
This guide is general information, not legal advice. Washington rules and penalty amounts can change, so verify current requirements with the Washington State Department of Labor and Industries (L&I) or a licensed advisor before you rely on them. Last updated: July 2026.