Legal Question in Business Law in Delaware

attaching an llc

I would like to find out if a member of a delaware llc doing business in nj passes away (dies) and creditors from the estate try attaching that member's interest in the llc what happens?:

does the llc have to liquidate that member's interest?

if llc makes distributions can that attachment receive thoses distributions?

does the member's interest get reflected on who ever attaches the llc and therefore the k-1 activity is reported on the attached parties personal returns and steps in the shoes of the member. So if there is taxable income and no cash distributions, the attaching party must pay the tax?

Let me know

Thanks


Asked on 4/23/03, 11:12 am

1 Answer from Attorneys
Benjamin Laves Benjamin S. Laves, Esq.

Re: attaching an llc

You must look to the Operating Agreement for the answers to your questions. They should all have been addressed there. If there is no operating agreement, Delaware law (statutes) will address the first part of your question(s). If you need assistance understanding the Operating Agreement as written please call me at (973)731-5110

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Answered on 4/23/03, 11:37 am


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