Estate Planning

The Future of Multi-Member LLC's in Florida

By David M. Goldman

The recent court decision which removed the charging order protection for single member LLC's has raised concern over whether a multi member LLC has charging order protection.

In addition, a member in Florida is defined as one who has an an economic interest in a Florida LLC as well as one who has been admitted as a member. In the case of bankruptcy, one may no longer be considered a "member" as defined in Florida law.

Many Florida lawyers are advising those who have single or multi member LLC's in Florida to switch them to LLC's in other states or change them to Florida Limited Liability Partnerships. Please note that just changing to a FLLP or FLLLP is not enough, one must have a special operating agreement which sets fourth obligations that will make it an executory contract in the case of bankruptcy.

If you have a Florida LLC, you should contact a Florida Business Lawyer to talk about how to change your organization or what options you have to protect your assets.

Full post as published by Florida Estate Planning Lawyer Blog on November 15, 2010 (boomark / email).