Small Business Reading Room

Monday, March 27, 2006

Just Another Reason for a Delaware LLC

One of the many reasons that Delaware LLC's are a favorite among businesses, is the law regarding Charging Orders.

Under Delaware's law governing Limited Liability Companies, a creditor can only get a Charging Order for a debt owed to him by a member of a Delaware LLC. It is his sole and exclusive remedy.

This Charging Order prevents the creditor from interfering with the operation of the LLC, and only allows him to intercept profit distributions to the debtor/member, if any such distributions are made.

This law provides a nice protected environment for uninterrupted business, when it is conceivable that one or more of your members might someday have an unsatisfied debt.


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Delaware Intercorp, Inc.
113 Barksdale Professional center
Newark, DE 19711-3258

"For all the best reasons to incorporate,the best place
is Delaware and the best incorporator is
Delaware Intercorp!"

Call Monday - Friday 09:00 (am) - 17:00 (pm) Eastern Time (GMT-05:00)

Toll Free - USA only - 888.324.1817
International: (1) 302.266.9367
FAX: 302.266.9940