Legal Question in Employment Law in California
Can child support be avoided by forming an LLC?
I am an employer who has an owner operator (independent contractor) who is attempting to avoid child support by setting himself up as an LLC - can an LLC be garnished?
3 Answers from Attorneys
Re: Can child support be avoided by forming an LLC?
You will not insulate yourself from child support with an LLC. Any money the LLC pays you can be subject to garnisment.
Re: Can child support be avoided by forming an LLC?
Although the procedures are different than a traditional wage garnishment, income from an LLC can be attached. By the way, income from an LLC actual has LESS protectioon than income from traditional employment. The maximum allowance for a wage garnishment is 25% of the net pay, but there is no specific limit on taking your income from the LLC.
Some professions do not allow you operate as an LLC. For example, professions are licenses by the state of California like doctors, lawyers and contracts cannot operate as an LLC.
Re: Can child support be avoided by forming an LLC?
I need to post a correction. Wage garnishments for child support payments are not subject to the same limitations as other types of wage garnishments. Forming an LLC will not protect someone from paying child support payments.
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