What Are Charging Orders and How Do They Affect My Limited Liability Company?
Congratulations! You are opening your first business and you have decided to form a single-member limited liability company (LLC). The LLC provides similar liability protection as that of a corporation. For example, if there is a judgment against the LLC for money damages, in most cases, the LLC judgment creditor cannot attach your personal assets. However, what if one of your personal creditors has a judgment against you? If you had incorporated, the judgment creditor may be able to reach your shares in the company as they are personal assets. But can the creditor reach the assets of your single-member LLC? This is where the charging order comes in. A creditor may ask the court to enter a charging order requiring the company to forward…

















