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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.
What state is the LLC in?
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.
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?
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.
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.
oh ok i see
Here is a link to an article that discusses the relevant statute and a case discussing the same:
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!
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?
ok thank u and i will
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.
ooooh....ok, i think i get it now. i will look up that website u posted and thanks again!
You're very welcome. Have a great night!