Topical Tips – August 2010

Will Your LLC Continue to Protect?

Today there are many limited liability companies established under Florida law that hold ownership of investment and commercial real estate.  One of the reasons that an LLC is used was for what many thought was the limited ability of a creditor to reach the property or income of the LLC.  That thinking was changed on June 24, 2010, by The Supreme Court of Florida, in the case of SHAUN OLMSTEAD, et al., Appellants, v. FEDERAL TRADE COMMISSION.  The Court concluded that Florida law permits a court to order a judgment debtor to surrender all right, title, and interest in the debtor's single-member limited liability company (“single member LLC”) to satisfy an outstanding judgment.

What does this mean for the assets of a person’s single-member LLC established under Florida law?  At a minimum it means that if you are the single member of the LLC, the LLC will not be the protective device you may have thought it would be relative to the assets and income that are owned by the LLC.

What if the Florida LLC of which you are associated has more than one member?  Should you be concerned?  The short answer is that no one knows until the Florida appellant courts apply the law of the Olmstead case to other fact situations.  If you are in the process of establishing an LLC under Florida or any state’s law, a discussion with your attorney concerning the implication of the Olmstead case is a necessity.

If you would like a copy of The Supreme Court’s decision in the Olmstead case, please call me 813-852-6500 or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Howard