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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 17500
Experience:  B.A.; M.B.A.; J.D.
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I have a single member LLC in Oregon that owns real estate

Customer Question

I have a single member LLC in Oregon that owns real estate that is going to escrow soon.
I have personal judgments from the IRS that I am making payments and some very old judgments from a previous real estate development. Can these judgements attach themselves to the profits of the project.
If so will adding my wife as a 50% owner change this like it happens in our other entity?
I just want to be sure here and structure it so that I can control who I pay when I pay.
I have business that went from 0 revenues to $2,000,000 revenues in the last 3 years and I am starting to pay down all of my old bad debt but I want to do it on my terms.
I want to avoid the event happening that a judgment can pierce the LLC
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
Can I move my existing Oregon LLC and become a foreign Delaware, Wyoming or Nevada LLC legally?
Customer: replied 1 year ago.
What I meant to say would it help if the membership interests in the single member LLC were owned by another LLC owned by my wife and I?I will pay more for this question to be answered.
Expert:  Phillips Esq. replied 1 year ago.

I have a single member LLC in Oregon that owns real estate that is going to escrow soon. I have personal judgments from the IRS that I am making payments and some very old judgments from a previous real estate development. Can these judgements attach themselves to the profits of the project.

Response 1: No. However, IRS can put an attachment on the profits of the LLC. You would receive a notice to levy if IRS does this. Other Judgment creditors would have to file Complaint with the Court for authority to put a levy on the profits. For more information, click on the link below:

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Levy

If so will adding my wife as a 50% owner change this like it happens in our other entity? I just want to be sure here and structure it so that I can control who I pay when I pay. I have business that went from 0 revenues to $2,000,000 revenues in the last 3 years and I am starting to pay down all of my old bad debt but I want to do it on my terms. I want to avoid the event happening that a judgment can pierce the LLC

Response 2: See my previous response.

What I meant to say would it help if the membership interests in the single member LLC were owned by another LLC owned by my wife and I? I will pay more for this question to be answered.

Response 3: No, it would not help because the debt is owned by the LLC and thus the nature of the debt does not change with an addition of another member

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