In Arizona can a debt collector come after my LLC bank account assets if I own only 49% of the LLC?
4 attorney answers
This can actually be a complicated question. Sometimes a creditor in Arizona can "pierce the corporate veil" in the context of a garnishment action. We have represented clients in such actions, and sometimes what a creditor can do is surprising. It is also possible, though, that those doctrines wouldn't apply in this case. A lot will depend upon your specific facts. If you have other questions, you can call my direct line at 480-325-9913.
This answer does not constitute legal advice. I am admitted in the State of Arizona only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. You should not rely on this advice alone, and nothing in these communications creates an attorney-client relationship.
The percentage of ownership of the stock is irrelevant. The account may be seized by accident if your name is on the account and you are a gaurantor of the account, but that is highly unlikely. Unless the creditor has a judgment against the LLC or the account is a personal account and they have a judgment against you they cannot attach it legally.
Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.
I agree. If the account is considered a "business account" by the bank then generally the identification is under the federal ID of the LLC not your social security number and you name is not on it as an account holder. If this is the case, the assets of the LLC account are not vulnerable to your personal creditors.
This answer in no way creates an attorney-client relationship. The answer is not a complete answer and requires additional facts in order to provide the best options. The submitter accepts the risk of relying on such an incomplete answer and waives any claims of damages for doing so. As stated in the answer the submitter should contact a qualified bankruptcy attorney is discuss these issues further before any action is taken. Any action taken without advise and counsel of a qualified attorney is inadvisable.
If your name is on the account they might be able to garnish it. If just llc name and you are not signer then not likely from info provided.