Quite a bit until Ashely Albright. Her bankruptcy set the precedent to liquidate the single member LLC rather than allowing creditors of the debtor member only a charging order. Now, an $11K judgment against the single member is enough to liquidate the LLC.
I would only use a SMLLC when the single member is another entity and the operating agreement would spell out how the SMLLC is to be run. Otherwise, they are just as effective as a sole proprietorship.
i only paid 300 bucks. Why do it yourself? Would you perform your own hip surgery or let a professional do it?
By the way, please enclose a check for 200 bucks for the tip. I should be an attorney. lol
Thanks. I’m feeling a bit frustrated because I went to see the lawyer and although he answered some questions I had, I’m still confused.
Better to take legal advices.
Yes, you would get the loan in your name and then transfer the property into your LLC. This could trigger the due on sale clause in your loan, but from my experience the banks don’t do this. They usually find out because you have to change your insurance policy to add your LLC and a letter goes out to your lender when this happens.
Biophase,
Rather than do the paperwork shuffle like that, why not just do what I said and personally guarantee the loan to the LLC?
It does trigger the clause, but banks don’t really care. In the few cases, I have seen issues, the bank allowed the LLC to assume the mortgage for a small fee. Another case was in a bankruptcy proceeding.