Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Florida Legislature Clarified Remedies Available to Judgment Creditors of FL LLC’s
On May 31, 2011, Governor Rick Scott signed into law House Bill 253, which clarifies that a charging order is the “sole and exclusive” remedy available to judgment creditors of members of multi-member Florida limited liability companies. It is believed that this legislation will put an end to the uncertainty generated by the Florida Supreme Court’s ruling in Olmstead vs. Federal Trade Commission, 44 So. 3d 76 (Fla. 2010) (hereinafter referred to as “Olmstead”). This legislation solidifies Florida’s reputation as one of the most debtor friendly states in the country by limiting the collection remedies available to lenders and thus, may make it more difficult for limited liability companies to obtain financing. It should also lead to even more conversions of corporations into LLCs, which can be done quite inexpensively and without tax consequences.
Read more in the attached excerpt from the September 2011 newsletter from the Eighth Judicial Circuit Bar Association, Inc.