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LLC protection?

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Kjup2

New member
What is the name of your state? NY, live in TX

If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property, can the winners come after my assets in the LLC or corporation or would only garnish my wages?
 


FlyingRon

Senior Member
The membership (ownership) of the LLC is an asset, so if they get a judgment against you they can possibly take your interest in the LLC.
If you fraudulently conveyed stuff from the LLC, they can possibly go after that transfer.
 

LdiJ

Senior Member
What is the name of your state? NY, live in TX

If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property, can the winners come after my assets in the LLC or corporation or would only garnish my wages?

Where is the property located? What kind of personal property are you talking about?
 

Taxing Matters

Overtaxed Member
What is the name of your state? NY, live in TX

If I open an LLC or corporation and I am sued (NY) and they won against me for negligence/personal injury on my property, can the winners come after my assets in the LLC or corporation or would only garnish my wages?
A lot depends on details we don't know. Would the corporation or LLC be a legitimate business, or just a shell into which you are stuffing personal assets? In what state is the entity formed? Are the transfers to the entity done prior to the day in which the accident occurs? Those sorts of details matter as to how easily the creditor could reach those assets. But one way or another eventually the creditor will be able to get them since you own the corporation or LLC and your ownership interest is an asset of yours. Corporations and LLCs are meant to provide the owners (with some important exceptions) protection from personal liability for the debts of the LLC/corporation. They do not help as much the other way around, protecting the owner from the owner's own creditors.
 

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