I have for my % of ownership until the judgement is paid in full? They subpoena my LLC bank acct and discovered I pay personal items from the acct so it entitles them to pierce the veil. Is there any truth to this?
Yes. If you own a membership interest in the LLC, your judgment creditor
can take steps to have you turn over the interest.
Mathew & George
801 S. Grand Ave., Suite 1610
Los Angeles, CA 90017
Tel: 310 478 4349
Fax: 310 478 9580
Yes, you can be required to turn over your interest in the LLC. And the turnover is permanent -- you don't the LLC back once the judgment is paid.
Yes, paying personal items from the LLC can be considered evidence that the corporate veil should be pierced.
If a turnover order is issued, you don't get your interest back when the judgment is paid.
Comingling coporate and personal assets and obligations is one ground for "piercing the corporate veil".
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
General Practice Lawyer
They can get a Charging Order that instructs the LLC to pay disbursements to them instead of to you.
I am an Attorney-at-Law, licensed to practice law only in the state of California. Unless we have both signed a formal retainer agreement, you are not my client, and my discussion of issues does not constitute legal advice. Opinions expressed herein are those of the author, and do not necessarily represent the opinions of those who hold other opinions.