Florida Single-member LLC Now Lacks the Luster It Once Had (Cont.)
The law relating to LLCs changed with the ruling in the Olmstead case. The Olmstead case struck down the charging order as the sole remedy against the membership interest in a single member LLC. In fact, the ruling left open the possibility that a multi-member LLC could be subject to the same type of ruling. In reading the Olmstead case, it was apparent that the Florida Supreme Court wanted to get to this ruling in reading the first sentence of the facts. The Court pointed out the fact that the LLCs were being used to run a credit card scam.
The ruling may have effectively killed the Florida LLC and the reasons for creating it. The Court discussed the Florida Limited Partnership and why the charging order is still in effect for it but not the LLC. I believe something will have to be done to clarify the law to make it clear whether or not the ruling applies to multi-member LLCs so that we will not have to wait until the Court rules on a multi-member LLC case. So only time will tell.
To discuss your LLC or other business entity, please consult our Jacksonville planning attorney.
