Affidavit Of No Employee Template for the United States

An Affidavit of No Employee is a sworn statement that lets a business owner formally declare, under oath, that the business operates without any employees. Once notarized, it serves as official documentation for federal and state agencies, insurance companies, and contracting partners who need to verify employment status. Notarization is what gives the statement legal weight and helps protect you from penalties tied to worker misclassification.

What is an Affidavit of No Employee?

It is a signed, notarized declaration confirming that no one working for the company meets the legal definition of an employee. The signer swears to the facts before a notary public, who verifies identification and applies an official seal. Because the statement is made under oath, accuracy matters: a false declaration can expose the signer to perjury liability. The affidavit typically names the entity, its structure, and the nature of its operations, then states plainly that it has no employees.

Who signs the affidavit?

The person who signs is whoever has authority to speak for the business under oath. Depending on the entity, that is usually one of the following:

• An owner or sole proprietor running the business directly.
• A partner in a partnership.
• An officer such as a president, secretary, or treasurer.
• A manager or member of an LLC.

The signer must have direct knowledge of the working relationships they are attesting to. An owner, partner, officer, manager, or member who signs without confirming each relationship first risks swearing to a statement that later proves inaccurate.

When do you need this document?

You will need an Affidavit of No Employee when applying for workers' compensation exemptions, since most states require proof that a company operates without employees before granting an exemption. Insurers frequently request it when underwriting general liability or professional liability policies, because employee status affects coverage requirements and premiums. The IRS may ask for the affidavit during an audit or when you claim deductions available only to entities without employees. Government contractors and certain licensed professionals, such as an irrigation contractor bidding on public work, also file these affidavits to maintain compliance with federal and state worker-classification rules.

How do you complete and sign the affidavit?

Start by confirming the legal name and structure of the entity, then review every working relationship to make sure no one qualifies as an employee. If you need help, follow these steps:

1. Confirm the legal name and structure of the entity.
2. Review each working relationship against the employee definition.
3. Fill in the operative statement declaring that the company has no employees.
4. Add the date and leave the signature block blank until you are in front of a notary public.
5. Sign in the notary's presence, provide valid identification, and let the notary complete the acknowledgment and seal.
6. Keep the completed original and provide copies to any agency, insurer, or partner that requested it.

You can complete the whole process online with GenieAI, then export a clean PDF ready to print, sign, and notarize.

Key legal considerations

The most important step is confirming that your worker classification aligns with IRS guidelines and the Fair Labor Standards Act. Evaluate whether anyone working for you is a genuine independent contractor rather than an employee under the IRS 20-factor test. Misclassification can trigger back taxes, interest, and fines. The affidavit must reflect your actual structure, whether a sole proprietorship, single-member LLC, or another entity type, and should describe operations accurately. Family members working in the company may still count as employees in some circumstances, so review each relationship before signing.

Legal requirements in the United States

Under US law, an Affidavit of No Employee must satisfy both federal and state-specific requirements. The Internal Revenue Code requires accurate reporting of worker status, and false statements can carry criminal penalties under federal perjury laws. The affidavit must be notarized according to your state's notary rules, which usually include identification verification and the notary's official seal. State labor codes may add disclosure requirements about operations and worker relationships. Requirements vary by state: Illinois, for example, ties the affidavit to its own workers' compensation exemption process, so check the rules where your business operates. Some states require periodic renewal, particularly for workers' compensation exemptions. The Social Security Act also governs how entities report worker classifications, so accuracy in the sworn statement supports ongoing federal tax compliance.

Related affidavit templates and support

If you need to document a different fact under oath, GenieAI offers a range of related templates, including a name affidavit and a proof of residency affidavit. You can browse the full affidavit template collection to find the right sworn statement, then draft, review, and finalize it with GenieAI's legal agent for support at every step before you sign.