Personal judgements and assets in an LLC

by Mike
(Washington state)

If I have an LLC, am sued personally, can they come after assets in my LLC to satisfy a personal judgment? Thank you.

Answer

Not directly, but indirectly.

The assets of the LLC are not yours, but your interest in the LLC is, and can be attached.

For example, if you own shares of Microsoft, and a judgment is rendered against you, the creditor can seize your stock in Microsoft.

But they can't seize Microsoft's assets (buildings, unsold copies of Vista sitting in warehouses, etc.)

What the creditor can do is get a charging order against your interest in the LLC such that if the LLC makes payments to its members, then the creditor will get those payments and not you. It's similar to garnishing wages.