The Llc : Flash Presentation
Business-friendly States & Strong LLC’s
WYOMING invented the American LLC in 1977, as it was modeled after the German Gesellschaft mit beschrnkter Haftung (GmbH). Nevada and Delaware copied Wyoming’s LLC and profited from it most through better marketing. Wyoming LLC’s offer a strong asset protection foundation. Members are not reported on public record.
ALASKA LLCs are a great choice if you intend to use multiple structures.
ARIZONA LLCs are strong alternatives to the weak California LLC. IRAs are protected. Otherwise, creditors have the advantage in Arizona.
DELAWARE LLCs are well drafted and based on strong LLC legislation. Great for big business.
HAWAII offers domestic captive insurance company formations.
IOWA is good for debtors! Unlimited homestead exemption, protection of certain life insurance, IRAs and disability proceeds are exempt. KANSAS & IOWA are very much alike. Iowa LLCs are okay.
NEVADA corporations and Nevada LLCs are outstanding in terms of flexibility, private control and business environment. It’s known as a haven for debtors. Problem: Nevada LLC requires disclosures of the members, their SSN’s and date of birth every year.
SOUTH DAKOTA has an excellent homestead exemption, as does Texas and Florida.
TEXAS looks out for the debtor. Limited Partnerships are exceptionally strong in Texas and they’re better than in any other state. They have generous exemptions for life insurance, annuities, and the homestead. Except for child support, wages can’t be garnished. Don’t mess with Texas if you’re facing a debtor with an interest in a Limited Partnership.
OKLAHOMA has excellent laws for Limited Partnerships and Limited Liability Companies.
Dangerous U.S. States & Weak LLC’s
ALABAMA: Alabama may be beautiful, but it’s awful if you’re a defendant in a lawsuit. They are known for their high jury awards.
CALIFORNIA LLCs: California overtaxes and overbears their citizens and strips away any possible defense from litigation. California attracts administrative losers who feel important by making life difficult for the small business through excessive regulations and punitive measures. Since January 1, 2004, California LLCs have no charging order protection. THAT MEANS NO PROTECTION WITH A CALIFORNIA LLC! The California court can liquidate your member interest and hand it over to the hostile creditor. DON’T USE CALIFORNIA LLCs! They are defective at best.
LOUISIANA is pro-creditor, all the way. They changed the fraudulent transfer regulations to favor the creditor.
NEW JERSEY is creditor friendly due to their lack of a homestead exemption and anti-debtor decisions on the transfer of assets. They are more likely to consider the transfer fraudulent, if timing is suspect.
NEW YORK is very friendly towards creditors by limiting the protection to debtors. If you live in New York, get a planner who knows what he’s doing.
VIRGINIA & WEST VIRGINIA looks out for the creditor.
