Charging Orders

CHARGING ORDERS

LLC formation lawyers should have a detailed understanding of the charging order provisions of the LLC acts under which they form LLCs, since these provisions may be critical in non-tax choice of entity, in choosing the governing LLC act, and in drafting operating agreement cross-purchase and redemption provisions. The world’s expert on charging orders is […]

NEW ARTICLE ABOUT CHARGING ORDERS

All LLC formation lawyers need to have a deep understanding of the charging order provisions in the LLC acts under which they practice.  Here is a link to an excellent new article on charging orders by Allan Sparkman, a leading LLC practitioner and scholar: http://poseidon01.ssrn.com/delivery.php?ID=528094093074029100091002071087066027051081060000028091094067079023096069009064071087049101030035000120107086010002127079070076020058046015033064090007026094114090088020033042127005098075073005000098124016075004114100101103102004108082098072065078085106&EXT=pdf

CHARGING ORDER PROVISIONS IN THE LLC ACTS OF COMMUNITY PROPERTY STATES

For those of you who practice even from time to time in community property states, below is an email from Jay Adkisson to me about community property state issues relating to LLC charging orders.  As you may know, Jay is perhaps the leading expert on charging order law and also a first-rate asset protection lawyer […]

LLC STATUTORY CHARGING ORDERS

Every LLC lawyer needs to have a detailed understanding of the meaning and practical effect of the LLC statutory charging order provisions under each of the LLC acts under which the lawyer forms LLCs.  The blog post under the link below deals with a recent Virginia charging order case, but it contains one of the […]

MAHALO! NO SEPARATE SUIT AGAINST LLC FOR CHARGING ORDER

As many of you probably know, Jay Adkisson is the world’s expert on charging order theory and charging order litigation (except, possibly, for his partner Chris Riser).  Below, Jay provides (i) a brief but very useful summary of an important new Georgia charging order decision called Mahalo Investments and (ii) the text of the decision.  In my view, […]

CHARGING ORDER CASE

The case cited below is one of the large and rapidly growing number of cases concerning creditors’ LLC charging orders against member-debtors-in-default.  The case is interesting because it spells out in detail the very limited nature of the legal rights of the holders of these charging orders.    The holders are not members; they have no […]

FLORIDA CASE

Yesterday, a Florida district court of appeals issued its opinion yesterday in a case called Young v. Levy, 2014 WL 2741060.  The case holds that because of the “exclusive remedy” language in the charging order provisions of the Florida LLC Act, plaintiffs can only obtain charging orders on distributions by the LLC in question to […]

SINGLE MEMBER LLCS

The LLC acts of at least two states do provide qualified charging order protections to members of single-member LLCs—namely, Florida and New Hampshire.  I think there are strong policy reasons why all LLC acts ought to so provide. The charging order provisions in the NH act apply to members of both single-member LLCs and multi-member […]

CARTER BISHOP’S STATE-BY-STATE TABLES PF CHARGING ORDER STATUTES AND CASE LAW

Here, in italics, are two paragraphs from a sentence outline for a webinar I taught recently for WealthCounsel on pick-your-partner and charging order provisions.  These paragraphs contain links to Carter Bishop’s marvelous state-by-state statutory and case law tables, which he very regularly updates, for LLC charging order law in all U.S. jurisdictions. 1)         State Series:  […]

WHAT IS A CHARGING ORDER?

The term “charging order” is one of the most important terms in LLC business organization law, but also one of the least-well understood.  On March 7, 2014, I sent a post to this listserv about the term and about an excellent recent decision about it in a case called First Bank v. S&R Grandview.  In […]