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Contractor (business) licensing

bullet Learn more about the workers' compensation liability of contractors (PDF)

Employees not required to be covered by workers' compensation

Minnesota Statutes, section 176.041, subdivision 1, under the paragraphs identified below, exclude the following from worker's compensation insurance coverage. Contractors are required to provide worker's compensation insurance only if they have employees who are not covered by the exclusions.

(d)

A sole proprietor, or the spouse, parent, and child, regardless of age, of a sole proprietor.

(e)

A partner, or the spouse, parent, and child, regardless of age, of a partner.

(g)

An executive officer of a closely held corporation having less than 22,880 hours of payroll in the preceding calendar year, if that executive officer owns at least 25 percent of the stock of the corporation.

(i)

A spouse, parent, or child, regardless of age, of an executive officer of a closely held corporation who is referred to in paragraph (g).

(o)

Persons employed by a closely held corporation who are related by blood or marriage, within the third degree of kindred according to the rules of civil law, to an officer of the corporation, who is referred to in paragraph (g), if the corporation files a written election with the commissioner to exclude such individuals.

(r)

A manager of a limited liability company having ten or fewer members and having less than 22,880 hours of payroll in the preceding calendar year, if that manager owns at least a 25 percent membership interest in the limited liability company.

(s)

A spouse, parent, or child, regardless of age, of a manager of a limited liability company described in paragraph (r).

(t)

Persons employed by a limited liability company having ten or fewer members and having less than 22,880 hours of payroll in the preceding calendar year who are related by blood or marriage, within the third degree of kindred according to the rules of civil law, to a manager of a limited liability company described in paragraph (r), if the company files a written election with the commissioner to exclude these persons.

Unemployment Insurance information

Only the following entities are not required to have a Unemployment Insurance Account Number:

1.

Sole proprietorships, partnerships, and limited liability companies with no employees.

2.

Sole proprietorships where there are no employees other than a parent or spouse.

3.

Sole proprietorships where there are no employees other than children of the proprietor who are under the age of 18.

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