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
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
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
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
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
It has generally been assumed that when a creditor of an LLC member gets a judgment against that member, the only thing the creditor can do is to get a so-called "charging order". Such an order does not give the creditor control of the LLC — just a right to receive distributions if and when
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
It is now well settled that a limited liability company insulates the owners from the debts of the company.
It is nevertheless reassuring when a court re-affirms basic LLC protections. In Dover Phila Heating v. SJS Restaurants 185 Ohio App.3d 107, 2009-Ohio-6187, the Ohio Court of Appeals for the Fifth Appellate District confirmed once again
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
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
