Both corporations and LLCs provide asset protection in that the owner will generally not be responsible for debts of the entity. But when it comes to protecting an owner’s personal assets from his or her personal creditors, an LLC generally offers better protection than a corporation. A creditor who controls the stock of a corporation
New Nevada Law Increases Protection of Single Owners of Corporations and LLCs
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…
Florida is Still a Debtor Friendly State for Asset Protection
The Florida Supreme Court recently ruled that a charging order is not the only remedy for creditors of LLC owners. My blog post of August 2, 2010 outlines the Florida Supreme Court decision. While the decision applied to a single member LLC, it could apply to multi-member Florida LLC’s as well. For the time being, Florida LLC owners…
LLC Better than a Corporation for Asset Protection Purposes
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…