Florida Asset Protection LLC Lawyer

In Florida Asset protection attorneys often use LLC's (Limited liability company's) for Florida Asset Protection. Our Attorneys and Lawyers help protect assets from creditors and potential liabilities by making sure their business assets are properly structured for protection.  Not every LLC offers asset protection for Florida businesses but they must be properly structured to achieve these statutory benefits.

The Limited Liability Company (LLC) can be used for asset protection, estate planning, and as a general business entity.

The individual's ownership in the Limited Liability Company are not "exempt" from debts of the company (their Creditors). The LLC's asset protection is available because of the way in which a creditor must collect a judgment from a properly created LLC.

Unlike a corporation, creditors can seize ownership interest in a Limited Liability Company to take care of the personal debt of a member of the limited liability company. In choosing the right options within the LLC Operating agreement, the member can limit a creditor's rights to receive distributions. Unless there is a distribution the creditor will not receive anything. Thus a LLC can stop making distributions to avoid paying the creditor.

The process of collecting against a LLC involves using a charging order or charging lien. When these are filed against the LLC they can create income tax liability even if they are never collected. Creditors may incur an income tax liability because of enforcement of a charging order. Companies often start paying the owners a salary, and stop making distributions. The member's salary can be exempt if they are head of their household. This means that the member's salary is not subject to a garnishment. Another solution is for the LLC to use annuities to distribute money to the member.

For now this protection only applies to multiple member LLC's in which at least one of the member is not responsible for the debt. Recently the Florida Supreme Court was asked to clarify whether the charging order applies to a single owner limited liability company.

For more information on how to use a LLC for asset protection in Florida Contact a Jacksonville Florida asset protection lawyer by email or by calling (904) 685-1200 to schedule a meeting.