I'm trying to get my business licence in Alleghany county Va. for a mowing service. 1st if its just me do I have to have workers comp. insurance. If so what kind of price should I expect. Has anyone ever got workers comp. for similar situation? If so what did you pay? Alleghany requires you to carry it on employees before they will issue a licence, but I could not find any info on how much coverage or if you were the only worker. I know that it is smart to carry it on myself but I am disabled and I don't receive any income to speak of so I need to keep my start up cost as low as possible at first. I tried to get a quote but there was too many unknown answers for that at this time. Finally with this type of business what other insurance should I consider?
Answers
Sorry this is almost a year since your question was posted. I can't speak specifically to Virginia employment law but in my experience in other states sole owner/operators don't need workers comp insurance.
I would be very cautious about treating any "employees" you might hire as statutory or independent contractors. Both the feds and many states have very strict rules regarding 1099 workers. I strongly recommend reviewing IRS guidelines at https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee and DOLI Virginia's guidance at http://www.doli.virginia.gov/vosh_enforcement/employee_misclassification.html
Richard, You do not have to have workman's comp for yourself. I live in southern Virginia and have worked for my self for years. The state has its own idea about workman's comp and self employed (a person can stop work at any time and claim an injury). Should you ever get others to work with you just treat them as statutory employees and give them a 1099 at the end of the year.
Don't know what kind of disability you have just be careful on how much money you earn. If military no problem its non reportable but if SSI you could run into a tax problem if you earn over the limit depending on your status (single/married). Hopes this helps.
Also a storage unit can serve as a legal address for a business license. Lots of Luck
Richard,
Workers comp is a tough one. If your license requires it, you don't have a choice. I would talk to an insurance agent and they could help you through that process the best. A one person operation would mean that if you got hurt on the job, that you would make a claim against your self (the business owner) and obviously you would not do that.
Liability insurance is another thing. I would suggest you look into that. If you damage someones property while on the job, it can help cover you. (think: flying rock hits a person or vehicle). Again, the insurance agent can go over what would and would not be covered with a standard liability policy. Talking to an agent is free.
Brian Richardson
www.VetLaunched.com
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