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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10645
Experience:  30 years of corporate, litigation and international law
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Are the protections (such as they may be) relating to a

Customer Question

Are the protections (such as they may be) relating to a charging order against a member's distributions from an LLC still in force if an LLC is administratively dissolved? In other words, if an LLC was administratively dissolved but the LLC continued doing its business (albeit not in good standing with the state), is the creditor still inhibited by the normal charging order remedies, or do they now have free reign to attach the member's portion of the asset without regard to the charging order constraints?
Submitted: 2 months ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 2 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Even though the company is dissolved, until its affairs are wound up, debts paid and remaining assets distributed the creditor would still only be entitled to a distribution made to the member. Keep in mind that upon payment of past due fees, the administrative dissolution terminates and all actions of the LLC during the period of administrative dissolution are deemed ratified and proper. For this reason until there is an actual dissolution, the creditor has no right to any of the LLC's assets until it is wound up.

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