LLC

Piercing the Veil Liability Depends Upon Where LLC Is Filed

“Where should I form my LLC” is a frequent asset protection inquiry. Most clients pose this question with respect to the protection of their membership interest from a creditor’s charging lien. Debtors believe that some states’ laws better protect membership interests from judgment collection. I’ve stated before, and on my…

Asset Protection Issues When Debtor’s File Their Own LLCs On Florida Website

You can file a new LLC yourself at Florida’s business website: www.sunbiz.org. The website has the forms with instructions, and it take just a few minutes. File your own LLC and save legal fees. It appears to be very simple. Yet, my experience is that about half the asset protection…

The “Do It Yourself” Florida LLC Operating Agreement No Longer Provides Asset Protection

Using a Florida limited liability company as an asset protection tool used to be relatively easy. Attorneys understood that a creditor’s sole remedy against a debtor’s interest in a Florida LLC, especially multi-member LLCs, was a charging lien.The charging lien gave the creditor restrictive and impractical tools to capture money…

Tax Issue In Conversion of S-Corporation To Limited Liability Company

Limited liability companies are generally better asset protection entities than corporation. A judgment debtor can levy upon the debtor’s stock in a corporation and in the case of a small corporation possibly stop the corporation business and liquidate corporate assets. In the case of a debtor’s limited liability company interest…