Michelle wrote:

- quote -

Not a tax question. Please ask in misc.legal.moderated.

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Michelle wrote:

- quote -

Creditors of whom? It seems to me that you think that
transferring property to an LLC would protect it from the
creditors of the transferor. It doesn't.

To the extent the transferor has an ownership interest in
the LLC, his creditors can execute at least on his LLC
shares. If he has no interest in the LLC and doesn't get
anything of equivalent value in return, it's a "fraudulent
transfer" and can be reached by creditors.

What an LLC or corporation does is to protect the investor's
property from the creditors of the business, not the other
way around.

Stu

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Michelle wrote:

- quote -

I will "challenge" the fact that you haven't asked a TAX
question.

MTW

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Please challenge any facets of the following premise
proceding the question:

An LLC is formed after an individual (now an LLC member, or
"interest holder") had accumulated personal unsecured debt,
and perhaps one or some judgements have been granted against
that individual for some of those debts. The Single Member
LLC Interest Holder then does not transfer assets to this
LLC (which, if he had, could be considered a transfer with
the intention of deceiving creditors and would pave the way
for the LLC veil to be pierced), but rather creates a
profitable business which accumulates wealth.

Question:

Is this wealth attachable by charge lien against member if
attacked by creditors?

If a state is required to answer, assume Florida.

Thanks for any help!

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