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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111679
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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My business account was levied for $7380 by the SC

Customer Question

My business account was levied for $7380 by the SC Department of Revenue last week. I did not receive and order or notice that this was happening. The account is overdrawn now by $7750 including NSF fees etc. My company is an LLC and I am the sole owner. I have repeatedly called the Dept of Revenue and have not succeeded in speaking with anyone. Each message I leave asking for clarification and a return call goes unnoticed. what I need to know is "can they levy my personal funds?"
Submitted: 9 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Under the law, the state does not have to give notice prior to garnishment. They levy garnishment without advance notice to prevent debtors from emptying their accounts. Now the garnishment was levied, you have to file an objection to garnishment in the court and ask the court to reverse the garnishment if it was not properly levied.
For a government debt, for taxes etc, the owner is personally liable, so they can come after your business and also your personal accounts if you are the sole owner as you are personally liable for any government debt to the state if the company is not able to pay.
Customer: replied 9 months ago.
What do you mean by "not properly levied?" Then what good is an LLC and why would a small business like mine care to have one? I just read the following: "Unlike an s corp or c corp, an LLC's structure is flexible. It also gives you the perk of pass-through taxes, limited liability (obviously), and legal protection for your personal assets. " what does this mean?
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your reply.
An LLC and a Corporation do GENERALLY protect the personal assets of the owner of the LLC or Corporation, the issue is that there is an exception to that which is for "government debt." Government debt is considered taxes due from the LLC, if the LLC does not pay that government debt, the government can come after the personal assets of the owner. For any other debts, the LLC protects personal assets.

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