The Case for a Multiple Member LLC
An LLC (Limited Liability Company) is a business entity created to provide tax benefits similar to a partnership and limited liability similar to a corporation.Based upon the 2010 Florida Supreme Court decision in the case of Olmstead vs. Federal Trade Commission, a court may order a judgment debtor to surrender all of his right, title and interest in the debtor's single-member limited liability company to satisfy an outstanding judgment. The court reasoned that since the sole member in a single-member LLC may freely transfer his entire interest in the LLC (through a simple assignment of the sole member‘s membership interest to the transferee) and since such an interest is freely and fully alienable by its owner, the law authorizes a judgment creditor with a judgment for an amount equaling or exceeding the value of the membership interest to levy on that interest and to obtain full title to it, including all the rights of membership.
Bottom line... it is not advisable to form a limited liability company with a single member.
If you have any questions regarding forming a corporation or limited liability company, please contact the Law Offices of Andrew N. Cassas, PA at 561-265-3311