Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
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:
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