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Limited liability companies (LLCs)

Limited liability companies not in construction or landscaping

A member (owner) of a limited liability company (LLC) is not a covered worker of the LLC and is not personally covered by your policy—unless SAIF receives and accepts a written application for the member's personal coverage and names the member on a Sole Proprietors, Partners, Officers, and Others Coverage Endorsement.

Construction and landscaping LLCs – licensed with the CCB or LCB

An LLC engaged in construction work regulated by the Construction Contractors Board (CCB) or landscape work regulated by the Landscape Contractors Board (LCB) is limited in the number of employed LLC members who can be exempt from coverage.

An LLC licensed with the appropriate board may designate no more than two members or one member for each 10 employees, whichever is greater, as exempt from coverage.

Those LLC members who do not meet the following exemption tests are covered under the policy.

Exemption tests (must meet both)
A member who meets the following tests may be designated as exempt from coverage:

  • The member has a substantial ownership interest. Substantial ownership interest is an ownership of 10 percent or more, or an ownership equal to or greater than the average ownership of all owners, and 
  • The member works for an LLC regulated and licensed by the CCB or the LCB.

You must designate in writing which eligible members are exempt from coverage and send the designation to SAIF. If you do not file a written designation, SAIF will designate the exemptions by applying Oregon law as follows: (1) largest ownership percentage, (2) next largest ownership percentage. If there is more than one member with the same ownership interest, the order of exemption will be determined by whose birthday falls earlier in the year.

An LLC whose members are all members of the same family may exempt any members who have substantial ownership. "Members of the same family" means persons who each bear one of the following relationships to one of the others: parent, daughter, son, daughter-in-law, son-in-law, grandchild, spouse, sister, or brother.

When a member is designated exempt from coverage, the member is exempt only as long as the requirements of the exemption are met. You can change exemptions by completing and submitting a new form.

Construction and landscaping LLCs not licensed with the CCB or LCB

An LLC engaged in construction work regulated by the CCB or LCB that is not licensed by the appropriate board may not exempt any members from coverage. All members are covered and you must report them on your payroll report as indicated in the following section.

Payroll reporting

For policies effective on or after January 1, 2017, members who elect coverage, members not meeting the exemption tests, or members not designated as exempt must report as follows:

  • Annual reportable payroll: $50,600

If your policy period is anything other than a full calendar year in length, multiply $138.63 by the number of days in the policy period. When the member is covered for a portion of a policy period, multiply $138.63 by the actual number of days the person was covered during the policy period. Report the result for the member's coverage during the policy period.

Please contact us at 800.285.8525 for more information.