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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116716
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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If we have a judgement for nonpayment of note against an LLC

Resolved Question:

If we have a judgement for nonpayment of note against an LLC in Louisiana can we attach property and checking accounts of other business that the LLC has an ownership interest in? We have a judgement debtor exam scheduled in about 30 days.
Submitted: 8 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 years ago.
You cannot attach businesses and accounts that the LLC has interest in unless you are able to pierce the corporate veil by showing that the LLC is merely an alter ego for these other businesses. Each LLC and corporation is considered a separate entity and liable for their own suits and debts. It is only when the LLC or corporation is shown to be the alter ego that the court will allow the corporate veil to be pierced such to allow you to get at the other business or companies and this is done by showing same management and employees, comingling of assets, insufficient funding, mixing of funds with the other entities, not following proper corporate proceedures (annual meetings etc) and a host of other factors. Now, what you can attach is any profits or proceeds the LLC is receiving from these other entities (receivables) which are property of the LLC.

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