Asset Protection Law Journal

Asset Protection Law Journal

Helping individuals and businesses take advantage of asset protection laws

Category Archives: Limited Liability Company

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Reflections on 2016 Ohio Asset Protection Developments

Posted in Limited Liability Company, Ohio law, Ohio Legacy Trusts
During 2016, Ohio continued to stand out as one of the best asset protection jurisdictions in the country.  I have noticed that more people are becoming aware of the significant opportunities offered by Ohio’s Legacy Trust statute.  As I have mentioned in earlier posts, an Ohio Legacy Trust is an excellent way to protect your… Continue Reading

Ohio Statute Specifically Covers Single Member LLCs

Posted in Limited Liability Company, Ohio law
Ohio amended its limited liability company statute earlier this year.  As I explained in prior posts on June 16 and July 15, 2016, the amendments strengthened the asset protection provisions of the statute. One of the most important changes was the addition of Ohio Revised Code §1705.031.  This section specifically provides that Ohio’s limited liability… Continue Reading

Ohio LLC Statute Now Provides More Protection For Members, Managers and Officers

Posted in Limited Liability Company, Ohio law
As I noted in a recent post, significant changes to Ohio’s LLC statute (contained in Senate Bill 181) became effective on July 6.  Among these changes are provisions making it harder to impose personal liability on members, managers or officers for the debts of the company. The new law specifically states that the failure of… Continue Reading

Significant Changes to Ohio’s LLC Statute Become Effective on July 6, 2016

Posted in Limited Liability Company, Ohio law
Ohio Senate Bill 181– which becomes effective on July 6, 2016 — will make some important asset protection improvements to Ohio’s limited liability company statute. Ohio’s LLC law is already an excellent one from an asset protection standpoint. The new changes will make it even better. The new changes include: More specific charging order protection… Continue Reading

Nevis Is Good Choice For Offshore LLC

Posted in Limited Liability Company
Nevis (a small island in the Caribbean) is currently a good choice for an offshore limited liability company.  Nevis recently amended its LLC Ordinance to better limit fraudulent transfer claims, and also to make it more difficult to enforce foreign judgments.  Nevis also now requires an LLC creditor to post a large bond to secure… Continue Reading

Growing Awareness of Ohio as a Top Asset Protection Jurisdiction

Posted in Limited Liability Company, Ohio law, Ohio Legacy Trusts
It has been a little more than two years since Ohio became one of the top asset protection jurisdictions in the United States.  Many people — including many attorneys–are still not fully aware of this dramatic development.  But word is slowly getting out.  We are getting more and more inquiries about Ohio’s Legacy Trust Statute… Continue Reading

New Laws In Ohio Offer Much Better Asset Protection Alternatives

Posted in Domestic Asset Protection Trusts, Limited Liability Company, Ohio law
The Ohio Legacy Trust Act (part of Ohio House Bill 479) becomes effective on March 27, 2013.  Ohio will become one of approximately 15 states with what is commonly called a Domestic Asset Protection Trust Statute. Ohio House Bill 479 also increases the Ohio homestead exemption and makes other changes that offer better asset protection… Continue Reading

Important Changes to Ohio LLC Statute Take Effect on May 4, 2012

Posted in Limited Liability Company, Ohio law
Ohio House Bill 48 (signed by Governer Kasich on February 2, 2012) makes some significant changes to Ohio’s LLC law.  The new legislation (which becomes effective on May 4, 2012) affects Sections 1705.18 and 1705.19 of the Ohio Revised Code. The new legislation clarifies that a charging order is the sole and exclusive remedy for satifsying… Continue Reading

New Nevada Law Increases Protection of Single Owners of Corporations and LLCs

Posted in Charging Order, Limited Liability Company
On June 16, 2011, Nevada’s governor signed a new law specifically making a charging order the exclusive remedy of a judgment creditor against owners of both LLCs and corporations in Nevada.  The legislation specifically includes a sole member of an LLC and a sole shareholder of a corporation. Nevada is clearly working to provide better asset protection for… Continue Reading

Delaware is a Good Choice for an LLC

Posted in Limited Liability Company, Ohio law
As I mentioned in a post last month, limited liability company laws vary significantly from state to state.  Depending on your particular circumstances, one state could have significant advantages over another. Here are a few reasons why Delaware is one of the best states to form a limited liability company from an asset protection standpoint:… Continue Reading

Picking the Right State for Your LLC

Posted in Limited Liability Company
Limited liability company laws vary significantly from state to state.  Depending on your particular circumstances, one state could have significant advantages or disadvantages over another. First of all, states have specific requirements when you form a limited liability company.  For example, New York requires a newspaper publication notice.  It also allows a manager-managed limited liability… Continue Reading

Nevis Is A Good Choice For An Offshore LLC

Posted in Asset Protection Strategies/Alternatives, Limited Liability Company, Offshore Trusts
In the United States, forming an LLC in a particular state (such as Delaware) can provide significantly better asset protection advantages than forming that LLC in certain other states.  The same holds true for offshore LLCs.  Nevis is currently one of the best offshore jurisdictions for a limited liability company. Forming a limited liability company… Continue Reading

Multi Member LLCs After Olmstead

Posted in Asset Protection Strategies/Alternatives, Limited Liability Company
I have discussed the Florida Supreme Court’s decision in Olmstead in other posts on December 20, 2010, September 22, 2010 and August 2, 2010.  In addition to severely weakening the asset protection advantage of a single member LLC in Florida, the decision unfortunately calls into question the effectiveness of multi-member LLCs in that state. There are various alternatives… Continue Reading

Olmstead Decision Does Not Make All Single Member LLCs Useless

Posted in Asset Protection Strategies/Alternatives, Limited Liability Company
On June 24, 2010, the Florida Supreme Court ruled in Olmstead v. Federal Trade Commission that a charging order is not the exclusive remedy for a judgment creditor against a debtor’s single member LLC interest.  This means that in Florida, a judgment creditor can essentially seize a debtor’s single member LLC interest and gain full… Continue Reading

Family LLC’s

Posted in Estate Planning, Limited Liability Company
Family limited liability companies can be a convenient vehicle to hold and administer family investments.  They offer significant benefits from both an estate planning and asset protection standpoint.  Until recently, the entity of choice for family investments was a family limited partnership (often just called an FLP).  While there is nothing wrong with an FLP, we are… Continue Reading

Asset Protection Strategies for Your Business

Posted in Business Protection, Insurance, Limited Liability Company
There are a number of relatively simple strategies an organization can use to provide significant protection for its assets. 1.                        Separate Entities. Consider creating a separate entity (possibly a limited liability company) to hold real estate, machinery, or assets relating to a new line of business. If there were a future judgment against the corporation, the assets… Continue Reading

LLC Better than a Corporation for Asset Protection Purposes

Posted in Charging Order, Limited Liability Company
A limited liability company (LLC) will generally provide better asset protection to its owner than a corporation. A limited liability company (“LLC”) is a hybrid type of legal entity that has some characteristics of a corporation and some characteristics of a partnership. Owners of an LLC are called members; they can elect to receive pass through tax… Continue Reading
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