I received an email from a client recently who was concerned about some information she received from a promoter of Wyoming and Nevada LLCs. She was told that a Wyoming LLC registered to conduct business in California will provide greater protection from charging orders than a California LLC. I hear this same argument time to time from Nevada or Wyoming ptichmen who’s only concern is selling you an entity and not in protecting your affairs. The information they provide is full of half-truths and misleading statements with one purpose in mind — to get you to buy an entity. I thought that I should share my response:
Dear Jane Doe,
In my opinion a WY LLC or a NV LLC registered to do business in California would not prevent the creditor of a member from enforcing a charging order against the LLC. — Why? — Click here to find out why on my recent post on BiggerPockets. You can also view my discussion of the matter below.