Tennessee Workers’ Comp Exemption
We file workers’ compensation exemptions for Tennessee sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in Tennessee
General (non-construction) employers must carry workers' compensation coverage once they have 5 or more employees, per the Tennessee Bureau of Workers' Compensation's official exemptions page. Construction-industry businesses are held to a stricter rule: coverage (including for the owners themselves) is required regardless of employee count unless the business is listed on the state's Construction Services Provider Workers' Compensation Exemption Registry (Tenn. Code Ann. § 50-6-902).
Who can be excluded in Tennessee
Sole proprietors
Outside construction: sole proprietors are excluded from the headcount used to determine whether the 5-employee threshold is met ('Sole Proprietors, Partners and Members of LLCs are excluded from the count of employees that determines whether or not an employer is covered' -- tn.gov). Inside construction: a sole proprietor who owns 100% of the business's assets must either carry coverage on themselves or obtain a Construction Services Provider exemption via the Exemption Registry (see 'construction' below).
Partners
Same as sole proprietors outside construction (excluded from the headcount, may elect coverage). In construction, a partner with at least a 20% ownership interest is eligible to apply for the Exemption Registry in place of carrying coverage on themselves.
LLC members
Same as sole proprietors/partners outside construction (LLC members are excluded from the employee headcount). In construction, an LLC member with at least a 20% ownership interest is eligible to apply for the Exemption Registry.
Corporate officers
A corporate officer may elect to be exempt from the Workers' Compensation Law chapter by giving the corporation written notice of the election, including an affidavit that the election was not advised, counseled, or encouraged by the employer (Tenn. Code Ann. § 50-6-104). Unlike sole proprietors/partners/LLC members, an exempt corporate officer is NOT excluded from the employee headcount used to determine the 5-employee threshold unless the officer receives no compensation. In construction, 'an officer of a corporation' is separately eligible to apply for the Exemption Registry.
Construction rules in Tennessee
Tennessee runs a genuine state exemption registry for the construction industry: the Workers' Compensation Exemption Registry (Tenn. Code Ann. Title 50, Ch. 6, Part 9, §§ 50-6-901 to 50-6-921), searchable at exemptionregistry.tn.gov. Eligible applicants (construction service providers) include: a sole proprietor who owns 100% of the business's assets; an officer of a corporation; a member of an LLC with at least 20% ownership; or a partner with at least 20% ownership. An applicant and family members together holding at least 95% ownership of the business may also qualify. Exempt owners must still carry coverage for every employee, even if there is only one. Exemptions are valid for 2 years from the date/time set by the Bureau (Tenn. Code Ann. § 50-6-907) and may be renewed within 60 days of expiration.
How the exemption is filed
General corporate-officer exemption (non-construction): the officer serves written notice with the required affidavit on the corporation itself -- no state filing (Tenn. Code Ann. § 50-6-104). Construction Exemption Registry: file the Initial Workers' Compensation Exemption Registration Application (form LB-4523) with the Tennessee Bureau of Workers' Compensation, either online at exemptionregistry.tn.gov or by mail (220 French Landing Drive, Suite 1B, Nashville, TN 37243). Fee: $50 for applicants who hold an active license from the Board for Licensing Contractors (exemption only); $100 for applicants without such a license (covers both the Construction Services Provider Registration and the exemption). Valid for 2 years, renewable.
- Statute
- Tenn. Code Ann. § 50-6-104 (general corporate officer election); § 50-6-902 (construction coverage requirement/exemption); § 50-6-907 (term/renewal of construction exemption)
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
Tennessee is the clearest true 'state exemption registry' state of the five researched: the construction registry is a formal, fee-based, time-limited state filing with public searchability, distinct from the informal private-notice election available to non-construction corporate officers. Do not conflate the two regimes when describing Tennessee.
Sources
- https://www.tn.gov/workforce/injuries-at-work/employers/employers/wc-exemption-registry.html
- https://www.tn.gov/workforce/injuries-at-work/employers/employers/who-must-carry-insurance/exemptions.html
- https://www.tn.gov/workforce/injuries-at-work/employers/employers/wc-exemption-registry/exemption-registry-forms-and-faqs/instructions-for-initial-exemption-registration-application.html
- https://law.justia.com/codes/tennessee/title-50/chapter-6/part-9/section-50-6-902/
- https://law.justia.com/codes/tennessee/title-50/chapter-6/part-9/section-50-6-907/
- https://law.justia.com/codes/tennessee/title-50/chapter-6/part-1/section-50-6-104/
Source material dated current statute/registry text as retrieved 2026-08-30. Compiled from official Tennessee sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Tennessee Bureau of Workers' Compensation (Dept. of Labor and Workforce Development) or ask us and we’ll check it for you.
Workers' comp exemption filing in Tennessee
Tell us about your Tennessee business and we'll confirm whether you qualify for an exemption.