Florida LLC owned by single member Wyoming LLC - Is this safe?

[Chad W.]

If I have a Florida LLC owned by a single member Wyoming LLC, am I protected with charging order protecting through the Wyoming LLC. In other words will I be treated as an LLC and not a sole proprietorship?

Unfortunately, a 2010 Florida Supreme Court case (Olmstead v. Federal Trade Commission) found that the charging order limitation did not apply to single-member LLCs in Florida.

This means that any Florida single-member LLC is not treated by the court system like other LLCs, but instead like a sole proprietorship.

In a worst-case scenario, a creditor seeking repayment from a single-member LLC in Florida could seize control of the company, redirect distributions and liquidate assets until the debt is paid.

Thanks for the guidance BP Members!

[John Thedford]

You need a qualified attorney to answer this.