Articles Tagged with Limited Liability Company

Real-Estate-Investment-300x200Real estate is a major investment in Silicon Valley. The law provides many ways to protect real estate assets.  For instance, many investors choose to place real estate under the ownership of a corporation or limited liability company (“LLC”). An experienced Silicon Valley real estate attorney can help guide investors through every step in acquiring real estate. Structure Law Group will help you with all of your real estate investment needs, such as identifying potential acquisitions which are appropriate for your business, performing due diligence investigations, determining whether the investment should be made in the name of a business entity, determining which type of business entity is appropriate for your needs, and executing the transaction documents to give your new asset full legal protections.

Which Legal Entity is Right for My Real Estate Investments?

Both corporations and LLCs are separate legal entities with legal identities separate from that of their owners. However, these different types of entities are treated differently for income tax purposes. It is important to choose the right kind of entity to make sure your real estate is properly protected.  For instance, LLCs can allow for profits and losses to flow directly to their members, without being taxed on a corporate level. Corporations, on the other hand, must be taxed as a separate legal entity. Corporations also do not provide their officers and owners with the same extent of legal protection from claims and liability enjoyed by members of an LLC.  Nonetheless, every situation is unique, so a full analysis of which entity is always right for you is always necessary to make sure you are getting the most out of your investment.

Fotolia_178717790_Subscription_Monthly_M-300x125California creditors have a variety of tools available to enforce their legal rights. The appropriate tool will depend on the circumstances. For example, in some instances, a lien may be placed on real and/or personal property in order to protect or enforce a creditor’s rights.  In the case of a debtor’s interest in an LLC, a charging order may be obtained creating a lien against the debtor’s membership interest in the LLC. Learn more about what a charging order is, how it works, and when it is the best tool for a creditor. An experienced San Jose corporate attorney can help your business find the best tools for enforcing creditors’ rights against any debtor.

What is a Charging Order and When is it Appropriate?

When a creditor has obtained a judgment against a debtor, the creditor may obtain a variety of different orders or liens to enforce the judgment against the debtor’s assets. These can include a garnishment of the debtor’s wages, a levy of the debtor’s bank accounts, or the creation of a lien against the debtor’s real estate and personal property. When the debtor possesses an interest in a limited liability company (LLC), a court may issue to the creditor and against the debtor a charging order in order to allow the creditor to try to enforce the judgment against the debtor’s membership interest in the LLC.