In California, any company with employees requires workers
compensation insurance. Everyone knows that workers compensation rates
are ridiculous in California, especially for contractors (construction
companies). There is a company in California (with a web site that I
cannot find for the life of me), that offers a solution for
construction companies. Basically, you pay them $800 and they set your
company up as a Corporation, and make your employees Officers of the
company (shareholders as well), and therefore exempt from Workers Comp
requirements. They also talk about how the ownership of the company
makes the employees better workers because they're potentially reaping
the benefits of the better profits. I can't find the name of this
company. I've seen their web site, but I don't know their name, and a
full hour of searching on google and yahoo has come up with nothing.
This is not a standard legal company that sets up companies as
corporations. It's a company that was specifically set up to help
contractors reduce or eliminate their workers compensation costs by
taking advantage of this "loophole" in the system. Also, by
incorporating, the business becomes liable, as opposed to the owners
being liable. So, a house burns down as a result of careless work, the
business gets sued, not the owners. I need help finding this company!
I've searched forever! If you have any questions whatsoever, email
me!!