generally the advantage of an LLC is that a charging order cannot for the managing member to distribute funds. In fact if I were to sue you, get a judgement for 100K and your member manager let the funds pile up instead of distributing them I would be responsible for the taxes on the 100K even though I had collected nothing in actuallity.
I still dont understand wether or not I would have to pay up if a judgement was ordered. What about bank accounts? Can they be seized or attached? The reason I am asking is because my oldest son's mom got a seizure from my bank account for more money that I believe I actually owed. The state attached my account and took $8217 without my permission. If the account was in the name of an LLC could that have still happened?
generally the advantage of an LLC is that a charging order cannot for the managing member to distribute funds. In fact if I were to sue you, get a judgement for 100K and your member manager let the funds pile up instead of distributing them I would be responsible for the taxes on the 100K even though I had collected nothing in actuallity.
A nice move isn't it
[addsig]
I still dont understand wether or not I would have to pay up if a judgement was ordered. What about bank accounts? Can they be seized or attached? The reason I am asking is because my oldest son's mom got a seizure from my bank account for more money that I believe I actually owed. The state attached my account and took $8217 without my permission. If the account was in the name of an LLC could that have still happened?
LLC protect the member from liabilities created by the LLC.
The LLC is not protected from the bad acts of the members.
If this was a tax lien on the LLC, the can attach the assets of the LLC.
If it was your personal tax bill, the LLC is your asset and all the state did was grab the assests of the asset.
A defense I can think of is if you only owned 50%, and they took 100% of the money, that wouldn't be right.
If the amount if in disput, then there's recourse.
Stockpro99:
whould you explain this a little more?
How can a manager of the LLC be presented w/ a valid court document not comply?
So, if you are buying a house "Subject to", what is the purpose of making the LLC beneficiary of the land trust? Where is the protection in this?
Good question.
I have not been able to get a goodanswer.