Asked in Real Estate Law for Alabama

Q: I have a personal judgment against me If I open a LLC with a partner will any assets that the new llc acquires

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1 Lawyer Answer
William Vann Burkett
William Vann Burkett
  • Huntsville, AL
  • Licensed in Alabama

A: LLC's are typically treated as separate legal "persons" under the law. While an LLC may provide valuable legal protection and tax advantages, they cannot be used to defraud or avoid paying debts. A court may treat each situation as unique and apply the doctrine of "piercing the corporate veil" if found appropriate. If allowed the creditor could then reach the LLC's assets. It sounds like your situation is complex. You should contact a local lawyer to advise you on how best to structure and operate your new business to legally avoid risk of un-related debt collection.

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