With all due respect, if you were a qualified lawyer you would know that what you posted is patently and totally uninformed false information. Anyone doubting my allegation can simply go to Google and type in "Charging orders" to see that not all "lawyers" deserve the creditability they demand. My webpage is the 7th item listed by Google and it contains links to most of the important links listed above my listing.
Ok... so please tell me how if you own an LLC and get sued for millions for causing an auto accident how the LLC protects your assets in the LLC from being attached. Your ownership in the LLC is an asset of yours and is attachable. Hmmm, when a major CEO gets divorced and he owns a large chunk of shares in the company, his shares are part of the marital estate, or as I said before, an asset of the husband which the wife is entitled to. The fact that it is a C-corp is meaningless. If you get sued and your property is attached, your membership interests in the LLC is attached. If you plaintiff wins judgement, they take your membership interest in the LLC and take their share somehow. You have not posted any refutation of what I said, just an order limiting lliquidation. The creditor still gets ownership over the assets. With a partnership, partners are jointly and severally liable FOR DEBTS OF THE PARTNERSHIP. If you get sued and have a 50% ownership in a partnership, then the winner in judgement can take your 50% ownership in the partnership as settlement on the judgement. If the PARTNERSHIP is sued directly, then both are liable. If you are sued as an individual for an auto accident or get divorced, your % ownership is at stake. Furthermore, all your quotes say is that there is a method to prevent the creditor from forcing liquidation of assets to satisfy the judgement. They still get the ownership rights though which is what I said happens. If it is a trading partnership or an LLC where liquidation of positions is quite easy or inevitable, you will not get similar protection. THe intent was to protect the other business owners from having to sell fixed assets or permanently damage their business to meet the creditor's judgement. An LLC or partnership of stock or option positions can be liquidated quite easily and a creditor will not have a problem forcing liquidation of some stock or option positions to satisfy their judgement. Moreover a GP Agreement can have termination clauses in cases of one partner claiming bankruptcy or pledging the partnership assets to non-related creditors or plaintiffs.
First off I'd like to commend you on your site. I've used it before and I like it. But.. If you'd read the info on your site you'd know that only about 13 states follow the RULPA view regarding foreclosure/liquidation of assets held in an LLC, by personal creditors. IOW, the majority of states allow for liquidation of LLC assets to satisfy personal debt. I'm going to have to respectfully disagree with you and side with OC on this one.
Reading the site it erinforces what I have said. A LLC interest and a GP interest both can be attached by a creditor in a personal debt situation. The charging orders for LLCs may prevent forced liquidation of the entire business to meet the debt but the creditor is still only entitled to the share of the debtor. Moreover, in the LLC, the credditor still gets the ownership rights or in many cases the LLC is forced to buyout the creditor or force the sale of the creditor's rights to a 3rd party. Bottom line, if you are sued and you have your trading in an LLC or GP, and those interests are attached and awared to the creditor, you lose them. The only protection is get personal insurance with deep coverage so that attachment of personal assets is a real last resort.
As I said before, I've enjoyed the contents of the site before, but it seems that traderstatus was (mis)using this occasion to promote the site. I would've expected that a person would read the contents of their own site. I find myself now questioning the credibility of the site due to his lack of education on the subject. So it would seem that his posts were somewhat counterproductive. Also, I do think that the attack on lawyers, as stated, was unwarranted. JMO...
Depends on who is lying at the bottom.... Ok ok sorr for the diversion folks. Bottom line for professional purposes a LP is a good idea. GP may be viable for just personal gathering of money between you and a family member but you can choose an LLC if you want and do not mind the small cost and filings.
If it's not a lot of money, why not just trade your father's account for him? He can then give you 1 and 20 as a gift (limited to $12K or $24K for a couple, I believe).