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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Family Law
Satisfied Customers: 116706
Experience:  Experienced attorney: Family law, Estate Law, SS Law etc.
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My son is trying to open a barbershop in New York and registered

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My son is trying to open a barbershop in New York and registered the name as an LLc. He just opened up a business account. His name is XXXXX XXXXX name on the LLC. I'm helping with the cash bc he doesnt have the resources. He is in child support arrears since he lost his job. Would c/s freeze the money on the business account? Everything is being done legally, he has the EIN, he needs the money to buy everything needed to start operations. My fear is that if I transfer all these monies into the business account account c/s would garnish it?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

The business is a separate entity from your son. The fact he has separate accounts and a separate EIN from his SSN would make the account separate from his personal accounts. However, when it comes to child support, the child support enforcement unit or the court can issue a garnishment order to the LLC for garnishment of any of the pay your son receives from his LLC, but they cannot seize the bank accounts legally as the business needs money to operate and they cannot operate with the business funds seized.

What we do see happen though is the courts will issue a levy on the business account and then the business owner has to go to court to prove the money is business money that is needed for operation of the company. Thus, in an abundance of caution I would suggest to you that if there is a child support arrears issue that you do not transfer all of the cash into the account at one time and you need to move it to the account as needed and only the amounts needed at one time to pay the bills and this minimizes the risks and would not make it as bad if they place a levy and he has to go to court to get it released because it is a business account and prove it is used only to pay business bills and not to pay his personal expenses.

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Customer: replied 3 years ago.

Thanks so much for the advice. I will share the information with my son. although I don't know much about family law my suggestion to him was transferring the money as needed. Now coming from an expert reassures what I thought the best way to go.

Thank you for your response. Generally parents still do know best and he would be wise to follow your advice.

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