The LLC is a TAX HYBRID "pass through" legal entity similar to a partnership but with the limited liability of a corporation. The LLC is tax driven and was classified legally by the IRS on January 1,
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For "Income Tax purposes" income and expenses of the LLC "pass through" directly to your income tax return proportionate to your percentage of ownership,
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Ninety percent of financial advisors give the wrong advice regarding single member LLC formations. Single member LLC are mistakenly assumed to protect the member from the creditor. single member LLC) against present,
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The advisors point to an IRS Revenue Ruling (77 137),
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CHARGING ORDER DEFINES CREDITOR AS SUBSTITUTED LIMITED PARTNER FOR TAX PURPOSES TO PROTECT SINGLE MEMBER LLC

The area of the laws surrounding the issues of the charging order to protect the single member LLC is dynamic and evolving. There’s no legal reasoning for a charging order protection for single member,
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There are several litigation issues unique to the LLC that are beginning to emerge in trial forums. State LLC laws,
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The central issue to single member LLCs (one owner) is "FRAUDULENT CONVEYANCE" which,
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Single shareholder corporation,
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A. The LLC,
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B. Formalities were not followed,
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C. The owner used the LLC,
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D. It did not serve a "bona fide" commercial purpose,
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E. It lacked in economic substance and was merely an alter ego of the owner whose sole intention is to frustrate the creditor(s),
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A single member LLC (one owner),
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Under the Uniform Fraudulent Transfer Act you would be committing a crime,
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".(a) a transfer made or obligation incurred by a debtor is fraudulent as to a creditor whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred,
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