Who must carry it in North Carolina
Any business with three or more employees, including part-time and family members, must carry workers' compensation; corporate officers and LLC members count toward the three.
Who counts as an employee
Agricultural employers need coverage at ten or more employees, and sawmill and logging operators have their own rules. The label on the paycheck does not settle it: North Carolina applies its own employee test, and a worker who fails it is an employee for workers' compensation no matter what the contract says.
Owners, officers and LLC members
Corporate officers and LLC members may exclude themselves from coverage but still count toward the threshold; sole proprietors and partners may elect coverage. The election is made on the policy and affects both coverage and premium, so decide it before the policy is bound rather than at audit.
The day you hire
CoverMatch quotes workers' compensation from the first employee, with pay-as-you-go billing through most payroll companies where a carrier offers it, so the policy can start the week you hire without a large deposit. Add the policy to your wallet and the live certificate is ready for the general contractor or client who asks for proof.
If you go without
Failing to carry coverage is a misdemeanor, and a felony when willful, with penalties per day of non-compliance and liability for benefits. The specific amounts and procedures are in the statute and on the agency page linked above; they change, and the licensed agent who reviewed this page checks them on each update.