Delaware Single Member LLC No Help For Debtor In Another State
So many people believe that the most important decision in forming a limited liability company for asset protection purposes is deciding in which state to register the LLC. Find the state, they say, that has the best LLC statute including protection of a debtor’s interest in a single member LLC. Florida law does not protect a debtor’s membership interest in a single member LLC.
The Delaware court refused to override the Utah court decision permitting the foreclosure over the LLC interest under the principal of Res Judicata. The Delaware court said the foreclosure issue had already been resolved in favor of the creditors in the Utah court based upon the theory that Utah law applied to the creditor’s remedy against the debtor’s LLC interest.
Last updated on May 22, 2020

About the Author
Jon Alper is an expert in asset protection planning for individuals and small businesses.

About the Author
Jon Alper is an expert in asset protection planning for individuals and small businesses.