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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>In regards to a charging order against a member’s LLC interest, you can look at RCW 25.15.215.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jeff Smoot who works creditor/debtor issues addresses this issue in his paper. See link…..<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a href="http://www.oles.com/images/uploads/Enforcing_Judgments_Partnerships.pdf">http://www.oles.com/images/uploads/Enforcing_Judgments_Partnerships.pdf</a> <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Very truly yours,<o:p></o:p></p><p class=MsoNormal>Maureen A. Wickert, Attorney at Law<o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><img border=0 width=192 height=48 style='width:2.0in;height:.5in' id="_x0000_i1027" src="cid:image001.jpg@01D25157.95DDEE80" alt="Business card for email"></span><b><span style='font-size:16.0pt;font-family:"Garamond",serif'><o:p></o:p></span></b></p><p class=MsoNormal>14900 Interurban Avenue South, Suite 255<o:p></o:p></p><p class=MsoNormal> Tukwila, WA 98168<o:p></o:p></p><p class=MsoNormal> Phone: 206-859-5502<o:p></o:p></p><p class=MsoNormal> Fax: 206-260-9005<o:p></o:p></p><p class=MsoNormal> <a href="http://www.wickertlawoffice.com/"><span style='color:blue'>www.wickertlawoffice.com</span></a><o:p></o:p></p><p class=MsoNormal> <a href="mailto:wickertlaw@comcast.net"><span style='color:blue'>wickertlaw@comcast.net</span></a><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><i><span style='font-size:10.0pt;color:#000099'>This electronic message contains information which may be confidential and/or legally privileged. The information is intended for the use of the individual or entity named above. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this transmission is prohibited. If you have received this electronic transmission in error, please notify me by telephone or by email immediately.</span></i></b><span style='font-size:10.0pt'><o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>sullaw@comcast.net<br><b>Sent:</b> December 8, 2016 13:24<br><b>To:</b> Listserv, WSBA <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Ownership of home In LLC?<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:"Arial",sans-serif;color:black'>This is a start:<br><br><o:p></o:p></span></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:"Arial",sans-serif;color:black'><a href="http://www.nolo.com/legal-encyclopedia/llc-protection-members-personal-debt-washington.html">http://www.nolo.com/legal-encyclopedia/llc-protection-members-personal-debt-washington.html</a><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;color:black'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;color:black'>John J. Sullivan<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;color:black'> <o:p></o:p></span></p></div><div class=MsoNormal align=center style='text-align:center'><span style='font-family:"Arial",sans-serif;color:black'><hr size=2 width="100%" align=center id=zwchr></span></div><div><p class=MsoNormal><b><span style='font-family:"Helvetica",sans-serif;color:black'>From: </span></b><span style='font-family:"Helvetica",sans-serif;color:black'>"John Creahan" <<a href="mailto:john@cairn-law.com">john@cairn-law.com</a>><br><b>To: </b>"WSBA Probate & Trust Listserv" <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br><b>Sent: </b>Thursday, December 8, 2016 12:21:46 PM<br><b>Subject: </b>Re: [WSBAPT] Ownership of home In LLC?<o:p></o:p></span></p><div><p class=MsoNormal><span style='font-family:"Helvetica",sans-serif;color:black'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='color:#595959'>Do you have a citation regarding the charging order? </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'>I have not focused on this issue, but, as Heather said, I don’t see how transferring the house to an LLC would provide any protection against debts incurred by his sole-proprietor business. </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'>I would strongly recommend that he transfer the business operations to one or more business entities (an LLC or corporation) for a number of reasons, including potentially limiting his exposure to business debts.</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'>My $.02.</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'>John</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'> </span><span style='color:black'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Tw Cen MT",sans-serif;color:#595959'>John Creahan</span><span style='font-family:"Tw Cen MT",sans-serif;color:#595959'><br><a href="mailto:john@cairn-law.com" target="_blank"><span style='color:#595959'>john@cairn-law.com</span></a></span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:"Tw Cen MT",sans-serif;color:#595959'>1325 4<sup>th</sup> Ave., Suite 940<br>Seattle, WA 98101<br>206-621-5848<br><a href="http://www.cairn-law.com/" target="_blank"><span style='color:#595959'>www.cairn-law.com</span></a></span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#39471D'><img border=0 width=161 height=60 style='width:1.677in;height:.625in' id="Picture_x0020_1" src="cid:image002.png@01D25157.95E7B280" alt="cid:image001.png@01CE636C.3EB992D0"></span><span style='color:black'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#595959'> </span><span style='color:black'><o:p></o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:black'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:black'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>John J. Sullivan<br><b>Sent:</b> Thursday, December 8, 2016 10:44 AM<br><b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBAPT] Ownership of home In LLC?</span><span style='color:black'><o:p></o:p></span></p></div></div><p class=MsoNormal><span style='color:black'> <o:p></o:p></span></p><div><p class=MsoNormal><span style='color:black'>Theoretically if there is a judgment against H&W the creditor could only obtain a charging order for distributions from the LLC, if any, and could not execute against the house itself (in the absence of fraud, etc.). </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'>Remember in CP states the LLC can be a disregarded entity for income tax purposes if only H&W are members. </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'><a href="https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies" target="_blank">https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies</a></span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'>Does a single member LLC enjoy protection from creditors in WA? It doesn't in every state. For that purpose is a CP LLC owned solely by H&W considered "single member?"</span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal><span style='color:black'>John Sullivan<br><br>Sent from my iPhone</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'><span style='color:black'><br>On Dec 8, 2016, at 9:32 AM, Heather deVrieze <<a href="mailto:heatherd@westseattlelaw.com" target="_blank">heatherd@westseattlelaw.com</a>> wrote:</span><span style='color:black'><o:p></o:p></span></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Someone can correct me if I am missing something, but it doesn’t seem like there is any realistic benefit to putting one’s personal residence in an LLC solely owned by H&W as protection from business liability owned solely by H&W. I have always understood that any protection of an LLC is protecting assets outside of LLC (personal assets) from liability inside LLC (business assets) except where personal liability is found. Am I missing something?</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Heather</span><span style='color:black'><o:p></o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D'>Heather S. de Vrieze</span><b><span style='font-size:16.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><br></span></b><i><span style='font-size:11.0pt;font-family:"Garamond",serif;color:#1F497D'>Attorney-at-Law</span></i><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:11.0pt;font-family:"Garamond",serif;color:#1F497D'><image001.jpg></span></i><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>3909 California Avenue SW</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>Seattle, WA 98116-3705 </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>(206)938-5500 </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><a href="mailto:heatherd@westseattlelaw.com" target="_blank"><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>heatherd@westseattlelaw.com</span></a></span><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><a href="http://www.westseattlelaw.com/" target="_blank"><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>www.westseattlelaw.com</span></a></span><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial",sans-serif;color:#002E8A'> </span></b><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial",sans-serif;color:#002E8A'>Click here to connect with de Vrieze | Carney on Facebook: </span></b><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span></b><span style='color:black'><a href="https://www.facebook.com/DeVriezeCarney" target="_blank"><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:blue;text-decoration:none'><image002.png></span></b></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Calibri",sans-serif;color:#A6A6A6'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Calibri",sans-serif;color:#A6A6A6'>CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information. If you have received this e-mail in error, please notify the sender immediately and delete all copies of this e-mail message and any attachment.</span><span style='color:black'><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:black'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:black'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Josh Grant<br><b>Sent:</b> Wednesday, December 07, 2016 3:26 PM<br><b>To:</b> wsbar trust <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br><b>Subject:</b> [WSBAPT] Ownership of home In LLC?</span><span style='color:black'><o:p></o:p></span></p></div></div><p class=MsoNormal><span style='color:black'> <o:p></o:p></span></p><div><div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>I have a client who has a large business, fully insured, however the activity has a potential for substantial liability (environmental, accidents to workers). It is owned as a sole proprietor by client with his wife.</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>He and his wife owns some real property including a family home.</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>It would be difficult to transfer everything in the business into an LLC. because of the nature of the assets. Same with transferring everything into a Corporation. Also he may sell the business in a year or so.</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>He is hoping for some reduction in risk exposure to his nonbusiness assets.</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>I have told him that their isn’t a lot of protection available, however, an LLC might be helpful (create a small barrier) for a business related claim, if for some reason he doesn’t have enough insurance.</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>Is there a problem if he puts the real property he and she owns in an LLC? Would it provide any protection to their assets? Other suggestions?</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Calibri",sans-serif;color:black'>Josh Grant</span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'> </span><span style='color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Calibri",sans-serif;color:black'>Joshua F. Grant, PS<br>Attorney at Law<br>P. O. Box 619<br>Wilbur, WA 99185<br>tel 509 647 5578<br>fax 509 647 2734</span><span style='color:black'><o:p></o:p></span></p></div></div></div></div></blockquote><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal><span style='color:black'>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a></span><span style='color:black'><o:p></o:p></span></p></div></blockquote><p class=MsoNormal><span style='font-family:"Helvetica",sans-serif;color:black'><br>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p></div></div></div></body></html>