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Thomas McJD
Thomas McJD, Attorney
Category: Business Law
Satisfied Customers: 6516
Experience:  Experienced in Corps, LLCs, Partnership, etc.
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if you start an LLC with another member (such as a family or

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if you start an LLC with another member (such as a family or friend), but have child support claims against you, can there be a lien placed against the newly formed LLC, or action taken against it by the state?

Thomas McJD :

Hi, I'm Thomas and will be happy to assist you. My goal is to make you a very satisfied customer! Thanks in advance for your patience.

Thomas McJD :

What state is the LLC in?

Customer:

nevada

Thomas McJD :

In NV, the LLC is not responsible for the debts of an individual member. However, if your creditors were to obtain a judgment against you, they could ask for a charging order against your financial interest in the LLC. With that, they would step into your shoes to take anything that is distributed from the LLC to you. However, they cannot participate in the management of the LLC, so they cannot force the LLC to actually make a distribution. Often times, this allows the LLC to freeze out the creditor by refusing to make a distribution. Thus, the protection is quite good.

Customer:

ok im just reading the disclaimer on the side panel and it says that this is not legal advice. i am in fact searching for something that is reliable and factual. will this conflict with advice from a lawyer if i hired one?

Thomas McJD :

The information you obtain here is factual and is the law. You just cannot rely on it as if it were legal advice from an attorney you would hire. However, the information you get here will not differ from what an attorney you hire in NV would tell you.

Thomas McJD :

In other words, I can tell you what the law is. You can then use that information as you see fit. I simply cannot give you advice on how to use that information.

Customer:

oh ok i see

Thomas McJD :

Here is a link to an article that discusses the relevant statute and a case discussing the same:

Thomas McJD :

http://calcorporatelaw.com/2012/03/nevada-supreme-court-clarifies-status-of-llc-charging-orders/

Thomas McJD :

It's pretty straight forward on this matter -- the LLC protection is very good and there's very little that a personal creditor of a member can do in regard to the LLC of which that person is a member. Just let me know if I can help with anything else. If not, I would be grateful if you could please leave me a positive rating for my assistance. Thanks!

Customer:

so basically what youre saying, as far as the charging order, is that whatever interests that person owns in the company, or property...it can be seized? or would they only have to pay what their interest or property in the company is all worth, out of thier own pocket or some of money they acquire through the profits or the business?

Customer:

ok thank u and i will

Thomas McJD :

No, it cannot be seized. All they get is the right to take anything that the LLC chooses to distribute to you. They cannot force a distribution or liquidation.

Customer:

ooooh....ok, i think i get it now. i will look up that website u posted and thanks again!

Thomas McJD :

You're very welcome. Have a great night!

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