Practice Areas
LLC: Limited Liability Company
LLC’s are one of the most popular planning tools for protecting your assets. They are more flexible and more difficult to penetrate than S corporations. Florida law gives creditors limited remedies against an LLC interest. Assuming the LLC has a well drafted operating agreement — see Note below — a judgment creditor is limited to a “charging lien” against LLC cash distributions. If the LLC manager (you are usually the manger) decides not to make a distribution, the creditor stands on the sidelines and receives nothing. On top of this, the creditor could be liable for taxes on the LLC interest income even though the creditor receives no distributions. These features make the LLC an effective asset planning tool.
Note: Numerous companies offer to establish an LLC for you at $250 or less. Avoid these schemes. The “guts” of the LLC is a good asset protection operating agreement which must be drafted by a Florida attorney. Anything less is false security.
Learn More About the LLC
To learn more about this valuable legal tool, request our Florida Trusts and Probate Alert: Florida Single Member LLC’s Have No Charging Order Protection, at info@raricklaw.com.
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Rarick, Beskin & Garcia Vega, P.A. has assisted Florida families and business persons for over 17 years. Our firm has worked with over 400 similar law firms located in states outside of Florida to represent their clients in legal matters concerning Florida probate, estate planning, and asset protection. To schedule a meeting, call (305) 556-5209 or (954) 566-1151, or email info@raricklaw.com. We look forward to meeting you!
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