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Legal Structures & Asset Protection

Charging Order Protection (WY/NV/DE Single-Member LLC)

Wyoming/Nevada/Delaware SMLLC statutes make charging order the SOLE creditor remedy — even for single-member.

Overview

In most states, creditors of a single-member LLC owner can seize the LLC interest (or force liquidation). But Wyoming, Nevada, Delaware, and a handful of others provide by statute that a 'charging order' (creditor gets distributions IF and WHEN made) is the SOLE remedy — even for single-member LLCs. Creditor can't force distributions, vote membership interest, or reach LLC assets. Combine with (1) manager-managed structure, (2) discretionary distribution language, (3) operating agreement 'poison pill' clauses. Result: assets held in WY LLC are effectively creditor-proof outside of fraudulent transfer.

Best fit
High-liability professionals (doctors, contractors)Real estate investorsAnyone with $500K+ liquid assets
Estimated impact
Judgment protection worth $500K–$millions

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