Navigating Insurance Requirements for a Single-Person S-Corp in Delaware
Starting and managing a single-person S-Corporation can bring about a host of intricate details, particularly when it comes to meeting state-specific requirements. My husband recently embarked on this journey in Delaware, opting to establish himself as the sole employee of his S-Corp through the OneStop Delaware portal.
In setting up his payroll, he encountered an option to waive the requirement for worker’s compensation. This seemed straightforward until he was prompted to provide proof of company insurance. Given that his business is a one-man operation, we had decided to maintain his coverage under my existing health insurance plan.
This situation raises a perplexing question: is it possible to navigate around the necessity of procuring separate company insurance, especially when the enterprise doesn’t intend to expand its workforce in the immediate future? The current expectation, that despite waiving worker’s compensation, company insurance remains mandatory, seems counterintuitive for our small operation.
We would greatly appreciate any insights or advice on managing this requirement while ensuring compliance with state regulations. As we chart this entrepreneurial path over the upcoming years, understanding these nuances is crucial for both our peace of mind and the smooth running of the business.
