Getting Workers Comp??? HELP

[pat65]

My wife spoke to my lawyer today regarding Workmens Comp. He stated that its not a MICHIGAN law that the sole prop. gets it and to find an insurance company to issue it will be hard to do and if they do it 'll be very costly.

My question/situation is this.

I haven't even put out a flier or got my business cards yet and I have to bid on a Commercial job at a very large orchard/cider mill. Its gonna be bu-ko acerage $$$ etc. The owner is a friend of my wifes and said that he saw I was starting up in lawncare and wanted to let me know that he doesn't like the guy he's had in the past and would like to let me give him a bid. Which I'm happy to do. OBVIOUSLY!!! Here's the kicker....He wants me to have workers comp. My lawyer, as I stated above said since I'm a one man band right now I can't get workers comp on myself, only any employees I hire. I didn't want to employ anyone just yet.

What do I do to get the job and ease his mind about NOT being able to acquire WC. ?????

How do I help myself in the case of a catastrophe i.e. cut off something? If I take the burden off him lets say and go ahead and still use my healthcare policy at my 'real' job what do I do if I hurt myself on a commerical job? Will my real job's health care policy cover it???

I'm starting to confuse myself! I have 3 other commercial jobs that they are wanting my services too and this may apply to them also. One is a 21+acre soccer field, the other is 3 common areas, ponds, entrances for a sub paid for by the homeowners association and the third is a 5 acre commercial office business.

I feel as if I opened a can of worms. (Don't think I'm complaining!) All I wanted was 10-20 residential lawns and work for/by myself. Should I hire a crew and workmans comp them and stay at my 'real' job and take these commercial accounts??

I know laws vary state to state so this really applies to Michiganders only at this point I think.

Any help is MUCHO appreciated at this point. I know this is alot to reply to, I know your all busy but you've all been priceless so far in everything you've said to me so I value your opinions.

I am meeting with my lawyer on Monday. He's preliminarily (is that a word?)stated that I structure LLC and in Mich that doesn't require WC. I just don't know what I'll have to say to convince the Cider Mill guy and other corps. to hire me anyway without WC or else they'll go down the road and hire a big outfit that has employees that carry WC.

UGH!!!

Thanks!!
PAT

[Scaper-S2k]

Not being rude, but if you want to play, you must pay. Most states don't require the owner of a sole pro to have WC. However, the employees need to be covered.

Also, many commercial locations want to see that you are covered under WC, regardless of Sole Pro or not. They don't want you stepping a foot on their property without knowing you will be held accountable for any problems that may arise. One deals with WC.

Also, one reason they want to see WC is because they will want to know that you have more than just yourself working. They don't want to worry about some guy getting sick and not being able to cut their lawn because you have no back up help. And back up help needs WC.


You just need to go get it if you want to do these properties, it's part of the game.

[pat65]

What happens if I go LLC and I put the business in my wife's name and I'm her employee and I get WC on myself that way?

Think it'll work??? Has anyone else out there done that that way????

Pat

[Allan]

You should be able to get a certificate of non-coverage. As I understand it, this removes the risk from the owner of the property. I would guess that is what he is after.

[Scaper-S2k]

What happens if I go LLC and I put the business in my wife's name and I'm her employee and I get WC on myself that way?

Think it'll work??? Has anyone else out there done that that way????

Pat

If you are an employee, you must have WC. So whether you cover yourself in a sole pro, or you cover yourself because you have to as an employee, it's gonna be the same.

[pat65]

Like I've said about 3x my lawyer said the sole business owner "The EMPLOYER" not employee, without any employees I cannot purchase WC in Michigan for ME MYSELF AND I. It isn't required by state law. Are you familiar with state laws in Michigan? I'm the only person in this bus. I can't get WC for myself. I can only purchase it on an employee that I hire to work for me.

I understand what your saying...Sounds pretty easy. However in MICH, its not. I know it sounds assinine but that's what the guy said. IF I have my wife as the LLC owner and I pose as her employee then I should be able to get the WC coverage as the employee. I think I answered my own question. I'm talking with the lawyer on Mon. I'll let you know if this is a way around it. Know this, I DO want the coverage. I just can't get it being the owner/operator.


PAT

[Scaper-S2k]

Hey, I'm just trying to help.

I don't know Michigan laws, but I can't understand why any state would say "No, we don't want your money because you are an owner".

In Ohio, it's not required for the biz owner, that's actually a privilege. But if you really want to give Ohio your money, they will allow you to to be covered as the owner.


For fun, I would call your local chamber of commerce and ask them. No doubt, the lawyer may be correct, but it just seems odd. Also your local chamber may offer you big discounts on getting WC, even if you have to go through a private company, they may recommend one that will give you big discounts for being a member. They do here.

[pat65]

I know it sounds NUTS! I'm not offended by your help. Did I sound like I was. I'm just trying to explain the facts so I can find someone who's been here done that, that's all. Not the first time the government has done something off the wall eh? Yeah take my money let me get coverage let me get the commercial accounts THAT's all I ever wanted. BUT those A** **** won't let me get it. I think this is just another way to make the small business owner suffer. I do understand that there are so many out there that want a small biz for the write-offs but that's not what I'm doing here. I think I'll move to OHIO!!!

Thanks Man, I DO appreciate your advice!

Pat

[pow]

Can you make your wife an employee and cover her?

[crzymoe]

you could incorporate your business and you would then be an employee. just a thought

[Scaper-S2k]

The easiest way would be to just bite the bullet and cover yourself with an outside company. There are extra costs when dealing with commercial accounts, that's why they are likely paying you more.