Posted by JHyre in Ohio on July 02, 2002 at 07:43:46:
No protection is ever perfect…LLC’s DO offer higher protection from outside lawsuits than corporations, in that your personal creditors cannot normally seize an LLC interest, while they can seize corporate stock. Run a search on the MNG (I don’t think that the search function is yet up for this newsgrouop) for “charging order”, you’ll see a lot on the subject.
John Hyre
Question on the extent of an LLC’s protection - Posted by Earl
Posted by Earl on July 01, 2002 at 21:01:48:
Thanks in advance for yet another LLC question on this wonderful web site and I hope this is clear.
I own properties in more than 1 state, and am setting up multiple LLCs’ for asset protection. I’ve read up a lot on LLCs’ both here and elsewhere. It’s going to be a while before I get all the LLCs’ set up due to the numerous peculiarisms of the various states.
I understand that if I’m sued by someone on a property owned by my LLC the limit of my liability presumably covers only those assets in my LLC.
But does it work the other way around? Suppose I’m sued by someone on a property that I haven’t yet placed into an LLC. In the worst case can the claimant go INTO my Florida LLC to get at my assets already in that LLC? (Assuming they can somehow legally tie me to the LLC) Do I need to worry about that possibility? Or are my properties in that LLC protected from some ‘outside’ lawsuit? Thanks in advance!
Earl