It's easier to figure out taxes if you keep track of your income. The owner's personal assets are separate from the business' assets. In addition, each member of a multi-member LLC is responsible for paying self-employment taxes. Multi-member entities combine the flexibility typically associated with partnerships and the liability protection corporations enjoy. Whether or not this would work is another matter altogether. This is done via Form 1040-ES, which requires each member to submit his or her best estimate of what he or she will owe for the year to figure out their income taxes. A commission could be earned on purchases made after clicking links. However, if you fall behind on your payments, your limited liability license could be at risk. The long answer is: its complicated, and is ultimately up the court. Our mission is to serve you valuable insights you cant get elsewhere. Additionally, if your LLC has unpaid payroll taxes, you may have to pay those out of your own pocket. Partnerships are formed by two or more people, yet LLCs are increasingly being formed by single individuals in the belief the protections of an LLC will benefit their business and them. A creditor of an LLC's member can only seek what is known as charging order against the member's interest in the LLC; they cannot directly attach the LLC's assets but rather only take payments from the member's distribution interest. A professional limited liability company ( PLLC) is a type of LLC whose members are licensed professionals. Corporations, on the other hand, are separate legal entities from their owners. Both biological parents have a responsibility to support their child financially, and this obligation is not a condition of marriage. For example, consider a firm in which you own shares and want to establish a multi-member LLC to protect your personal assets. Even if LLC members are required to leave money in the company for example, to buy goods or grow it each member is responsible for income tax on his or her proportion of the earnings. Keep in mind that every type of business will be unique. Some multi-member LLCs elect one member or a third party to manage the business, which is called a manager-managed MMLLC. The #1 Way To Support This Channel Is Backing Me On SubscribeStarhttps://www.subscribestar.com/thequarteringBecome A Youtube Member! If two or more individuals or entities do not create a partnership arrangement, the losses and profits the entity or individual makes are reported on the entity's or individual's tax return. In all other states, a MMLLC is a good idea as it protects both partners if financial or legal struggles surface in the business., Taxes are a little different between MMLLCs and single-member LLCs. You'll also be able to disclose income and taxes with greater confidence and peace of mind, knowing that you haven't overlooked anything. In such a case, adopting the single-member LLC model may seem natural. A single-member LLC allows you to significantly simplify your taxes. However, if a couple agrees the added protection of a multi-member LLC is preferable, they may find adopting a multi-member LLC model to be worthwhile. For multi-member LLC's, only managers and managing members are subject to self-employment taxes for the services rendered on the LLC normally through guaranteed payments, if the managers and/or managing members are individuals. Indeed, this may be a serious concern, if revenue from your LLC has slowed or stopped, and you need more time to pay your debt. Multiple award-winning blogger, podcaster, content creator, digital marketer, social media influencer, and respected public figure for well over a decade. The partners' distributive shares are typically determined in proportion to their initial investment or based on their level of ongoing involvement with the day-to-day activities of the business. When it comes to federal taxes, by default, multi-member LLCs are treated like partnerships unless they request otherwise. Kevin OFlaherty is a graduate of the University of Iowa and Chicago-Kent College of Law. Multi-member LLC Purchase and Equity Setup I purchased an existing LLC with three partners in June. I understood from a past discussion that in Missouri a husband-and-wife membership in an LLC is a partnership and not a sole member or sole proprietorship. In order to report employee taxes, your LLC is required to have an EIN. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. When you have your EIN, it is essential that you conduct all LLC business with that EIN. A person starting a business could form a multi-member LLC and add their spouse, parent, or children as members of the company for asset protection.. Asset protection means that anyone who's a member of the LLC can't have their personal assets, like their car, house, or savings, taken in the event of a . Your email address will not be published. In reviewing the Operating Agreement, the membership is listed as follows: The EIN that I received . Arizona is one of the few states that allows individuals to establish single-member LLCs. These fees can include things like the cost of materials, office space, marketing, and travel. An example of a change in your LLC would be if members leave or if you start using a different management company. When it comes to LLCs with more than one member, taxes can get a bit more complicated. Your lawyer will help ensure your initial support order is equitable and adequately covers your child or children's financial needs, including housing, food, school, clothing, medical expenses and other related costs. LLCs also offer a lot of flexibility for your company's organizational structure and are not subject to the restrictions and regulations adherent in S and C Corporations. How Does the IRS Treat Multi-Member LLCs for Tax Purposes? The Benefits of Starting an LLC in Nevada (Must Read), How To Change A Single Member LLC To Multi Member? It can change how you file taxes and add additional support in case of bankruptcy. You can learn more with our guide to paying yourself from your LLC. Venture Smarter shares business tactics that help entrepreneurs stay ahead of the competition, maximize their capital and avoid common traps and downfalls. A multi-member LLC (MMLLC) is an enterprise merging two or more members to jointly commence a business. Here is a list of the various forms you will need to file: The only difference between paying federal and state income taxes will be the forms you need to file. We spent 2 months consulting with clients from different profiles on this topic. This gives you the freedom to share out the earnings not . We are here to help! Per our operating agreement, we each have 25% interest (ownership) in the business. If you hire employees for your business, you will have to register for your State's employment taxes. Tommy Charles is an entrepreneur who has started many small businesses, both brick and mortar and online. MMLLCs can have an infinite number of members and members can be individuals, other LLCs, or corporations. Inferring from your question that it is a single member LLC and that it is member managed by its sole member, your child's father, then you should be able to levy against the LLC as an asset belonging to your child's father. There are no limits* to the number of Members a Multi-Member LLC can have and the LLC Members can be individual people, or they can be companies (like another Corporation or LLC). As a legal entity, the multi-member LLC offers the possibility of a partnership alongside personal asset protection. What Is the Difference Between Single Member LLC Taxation and Partnership Taxation? California is not one of these states. With a multi-member LLC, you must be very careful when writing your operating agreement. Can an Operator of an LLC Get a Discharge in a Bankruptcy? According to most states' child support guidelines, gross income can be garnished. The information presented should not be construed to be legal advice nor the formation of a lawyer/client relationship. Because an LLC is an independent business entity, it would appear on the surface that any bank account associated with it cannot be garnished. There are a few reasons an LLC might elect to be taxed as a partnership. From their share of LLC profits, each owner can pay themselves with a distribution. Unlock exclusive features & receive updates, TREC:Consumer Protection Notice, NY SOP, 447 Sutter Street STE 405 PMB 250 San Francisco, CA 94108, A multi-member LLC, also known as a MMLLC, is a limited liability company (LLC) with more than one member.. Child support is a series of court-ordered payments paid by a non-custodial parent. Other states have taxes that are specifically for multi-member LLCs. How ownership is divided within the LLC should be outlined in your operating agreement. If the LLC is multi-member, this seizure cannot include company assets without the agreement of other members of the LLC, as this would amount to the court taking one person's assets because of another's misconduct. In some cases, a business owner forming a new limited liability company as a single member LLC (SMLLC) may raise a question as to whether there is a advantage or disadvantage to adding another person (perhaps a spouse of the member) simply to cause the LLC to become a multiple member LLC. (2023 Guide) Must Read. Eventually, the court decided that because the LLC had only one member at the time of the filing, ownership of the company belonged to the bankruptcy estate, and that the trustee could serve as a substitute member. If it does not check this box, the entity is treated and taxed as a partnership. They'll be able to help you stay in compliance and avoid any problems with your LLC license. One of the biggest strengths of multi-member LLCs is that they are perfect for family-owned businesses. This article will discuss what kind of impact child support can have on an individual's LLC license. Invest in real estate and never run out of money! With over 9 years of consulting experience, Jon is an expert in developing and running successful enterprises. In the U.S., corporate income is often taxed twice insofar as not only the company must pay taxes, but also the shareholders. A limited liability company is a relatively simple business entity that provides pass-through taxes and limited liability for business debts. A single member LLC is exactly what the name suggests: an LLC with only one member - the owner. Enter your email address below for your free UPDATED Guide to Divorce eBook. Necessary business expenses are those expenses that are very helpful, but necessary expenses must also be ordinary expenses to be tax deductible. Before you form your multi-member LLC, you should also consider the drawbacks of this business structure, especially as they relate to taxes. As an example, let's assume that you and another person own a variety of properties, each of which has been incorporated as an LLC. I believe Missouri is not a community property state. However, by now, every state and Washington D.C. permit single-member LLCs, so this is no longer a problem. Income, and the Asset tests. A limited liability company (LLC) is a legal entity created by owners, called "members", to conduct business. If so, the court may rule that each party will retain the share stated in the operating agreement. This means that the company's profits and losses are passed through to the partners and taxed on their individual tax returns. However, some states may tax LLCs differently, so it's important to check with an accountant or tax specialist to see how your state taxes multi-member LLCs. We will answer the following questions: If you're a business owner or professional requiring a license, you may wonder if failing to pay child support can negatively impact your work. If you start a second job or receive an income increase and do not report it to the OAG, you could be held in contempt of court, which can result in penalties such as fines, imprisonment, or other consequences. Failure to do so could spur a judge to nullify your LLC protection. Attached to this will be K-1 forms for each member showing their share of business income. When it comes to the personal level, a married couple may see a difference where the taxation of personal income is concerned. This content is designed for general informational use only. Can a Creditor Collect if an LLC Is Dissolved? Alexis has worked . The first step is to start determining income [1]. Calculating the Child Support as an Entrepreneur, Effect Child Support Can Have on LLC License. The statute regarding this seems clear, yet it may be many years before case law can develop to give lawyers the comfort they have with decades of case law regarding single-member LLCs. For example, in Shaun Olmstead v. Federal Trade Commission, the Florida Supreme Court decided that creditors can reach the entire interest of debtors related to their ownership of single-member LLC's, and thus the greatest advantage of single-member LLCs has been eliminated. For instance, business owners who mix business assets with personal assets are in danger of losing LLC protection. However, generally speaking, steps for a statutory . The other advantage of this option is that you can use a single EIN for all properties owned by the LLC. However, if your state did allow you to form a single-member LLC, one question of great importance was if states that did not allow single-member LLCs would recognize such organizations in states where they were allowed. The rights and responsibilities of company members should be described in detail, and your operating agreement can cover events such as: When seeking to determine what structure to select, it is best to review all the options and not settle on the most popular form. We'll also provide tips on how to calculate the expenses. This means that the single member LLC's profits and losses are passed through to the owner and taxed on his or her individual tax return. Our mission is to provide excellent legal work in a cost-effective manner while maintaining open lines of communication between our clients and their attorneys. The short answer is that no, your LLC bank account cannot be accessed by bank child support services directly. For more information on these and other taxes, be sure to consult with an accountant or tax specialist. To put it simply, a multi-member LLC is a Limited Liability Corporation that has multiple owners. You want to make sure you are calculating it correctly so that you don't end up paying too much or too little. Failure to do so can render your LLC protection void and can impact whether or not child support services can access your LLCs bank account. Choosing this solution means you would no longer need to file an individual tax return for each piece of property. The trustee's reasoning was based on the fact that the debtor was the sole LLC member at the time of the bankruptcy filing. It is important to note that a bill is currently being debated in Congress that would lead to a tax on all S-Corporate earnings, similar to the self-employment tax. A multi-member LLC has multiple owners ( two or more members) and shares control of the company. But, there are cases where a single business owner may want to form a multi-member LLC. Once you have your gross income, you'll need to subtract any business expenses that are considered necessary and reasonable. A multi-member LLC, also known as multi-member LLC, is a limited liability company (LLC) that consists of two or more owners/members. How Is A Multi Member LLC Taxed? Your company has the freedom to allocate a percentage of the business's profits and losses among the different owners as they chose. Single-member LLCs are used for businesses owned by a single person. A limited liability company (LLC) is a business structure that provides the owner (s) with protection from liability similar to that of a corporation. . Several members of the community have joined the effort to create this facility, including existing health care organizations, the local business community, local colleges, techni Depending on your state and whether your household has an elderly (over 60) or disabled member, your household may be exempt from the Gross Income, Net Income, and/or Asset . Like John and Miguel in the example above, youll be part of a multi-member LLC if you choose to become a co-owner of a second home with Pacaso. What is a Multi-Member LLC & How Does it Work? If you're currently paying child support, you may be wondering how this will affect your limited liability company license. A single-member LLC is easier for tax purposes because no federal tax return is required, unless the business decides to be treated as a corporation for tax purposes. Suppose you give a statement to the judges that shows you have consistent income throughout the year, but your income fluctuates significantly from month to month. You get to have "LLC" in your business name, and as the name states, it protects your personal assets and limits your liability against lawsuits and creditors. It's usually the correct choice when two or more people run a company together and need to create the business and taxation entity designed for that situation. Instead, your profits will be reported via the Schedule "Supplemental Income and Loss" form. Case-by-case consideration is required, so therefore, a definitive answer cannot be given. A Kansas multi-member LLC operating agreement is a legal document that provides to the members of a member-managed entity the ability to set forth company standard operating procedures and policies to be agreed upon by all members. Check your email for your free UPDATED Guide to Divorce. For example, it's common for multiple people to decide to form a single-member LLC. This means you need to pay taxes of both employer and employee portions of Medicare and Social Security taxes, also known as Self-Employment Tax (SET). But an LLC can elect to be taxed as a corporation or S corporation. An LLC founded by one member is known as a single-member LLC, and if there's more than one member it's called a multi . When forming an LLC, whether a single-member or multi-member, there are numerous factors that you must consider. In that case, you will be doing yourself a disservice and may end up paying more than necessary. The company is taxed on all profits that it can't deduct as business expenses, which is known as taxable income. Employers are required to payboth federal unemployment taxes (FUTA) and state unemployment taxes (SUTA). For example, if one member participates in fraud or gets lax in their bookkeeping in regard to the business or property, other members can be held liable for their mistake., If you and your spouse open a business, you may need to file for a multi-member LLC depending on where you live. Additionally, you must properly operate your LLC at all times. Multi-member LLCs are taxed as partnerships and do not file or pay taxes as the LLC. There are many different ways to make a mistake in this process, so it is essential to document all of your income and show it to the court. Taxes that are part of the Federal Insurance Contributions Act (FICA)include two types of taxes that are paid by all employers and employees: Social Security tax and Medicare tax. We will answer the following questions: This article will discuss child support's impact on an individual's LLC license. Because an LLC is, by definition, an employer, if youre paying yourself a salary, that salary could be subject to garnishment. When members need money, they take a draw. LLC. Want High Quality, Transparent, and Affordable Legal Services? However, this may not happen if they are both members of the LLC or if they file a joint tax return as a single-member LLC. Family businesses, co-owned companies, married couples and individuals sharing property gravitate toward this structure because it protects all related parties from personal liability in terms of business expenses or debts., Here are a few examples of scenarios in which a multi-member LLC might make sense., The LLC business structure can be formed by almost anyone collaborating with at least one other person on a business venture. You might get more than one card. Some states like California and Texas require LLCs to pay a special business tax. During the bankruptcy proceedings, the Chapter 7 trustee argued that they should be allowed to control the LLC, including selling the company's real property and distributing the profits from the sale to the bankruptcy estate. The good news is that as long as you're up to date on your payments, there should be no problem. This concept was borrowed from corporate business structures and ensures that members personal assets are protected if the LLC is threatened with a lawsuit., MMLLCs and single-member LLCs have some differences when it comes to taxes. But this depends on the address. Adding a partner or member to an LLC doesn't have to be a complicated processand in most cases, it isn'tbut you do have to make sure you're following all of the procedures required by law. By opening adedicated business bank account, getting a business credit card, and creating a good bookkeeping system, you can easily separate your personal and business finances. Most states require the person making these payments to do so until one of the following conditions is met: The. There are, of course, exceptions. LLC formation has increased to become one of the top corporate structures chosen by start-up businesses. When starting an LLC, you must first determine how you will be taxed; as a result, you'll have the ability to pick the greatest tax status for your company, discover tax benefits, and avoid future fines. When the LLC takes an action, it should be documented that the owners authorized the action. LLC & Child Support (What You Must Know) 2023 Update. Ultimately, it seems probable that members of single-member LLCs will have no less legal protection than a partner in a multi-member LLC. Venture Smarter is backed by its users. While it's probably safe to assume that money in an LLC bank account is secure, as soon as that money is drawn, it is no longer protected, even if you're the owner. Something went wrong while submitting the form. Your email address will not be published. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. A multi-member LLC is a business structure that's designed for more than one owner. On the other hand, the IRS treats single-member LLCs as disregarded entities. This can be a partnership with two owners or more than two members, as youll find in real estate co-ownership opportunities like the ones, If youve never been part of an LLC before (especially if youre new to multi-member LLCs), they can seem complicated. The partnership return will show the amount of income that was allocated to each partner, as well as the amount of money that was distributed to them. For single-member LLCs, should they realize a profit, not only are those profits subject to the owner's income tax but also self-employment tax on the profits of the LLC. I give Pacaso permission to contact me & agree to the terms. By choosing this option, you would no longer have to file a tax return for each property; you would only file one return for the entire LLC. When youre ready to buy your second home, well partner with you to purchase 1/8 of a home via a private, professionally managed multi-member LLC. You might combine all of these properties into a single-member LLC owned by one multi-member LLC using this option. This tax is usually called a franchise tax, but can also be a business excise taxor a privilege tax. If you owe child support, you may be wondering if the courts can levy your LLC bank account. If you want to split profits and losses in a manner that is not proportional to the members' percentage interests in the company, it's known as a special allocation. This document breaks down each owner's share of the LLC's profits and losses, which must be reported on each owner's individual Form 1040. The child enlists in the military and is considered active duty. It may trigger an investigation or, at the very least, cast the business owner in a negative light, forcing them to justify their earnings. But they will still benefit from having an operating agreement in place. In this blog post, we explain how child support obligation works for business owners and how to comply with the law. This is done via Form 1040-ES, which requires each member to submit his or her best estimate of what he or she will owe for the year. Single person you cant get elsewhere learn more with our Guide to Divorce eBook as taxable income this... Questions: this article will discuss child support obligation works for business debts not this... In case of bankruptcy to payboth federal unemployment taxes ( FUTA ) and state taxes! Bankruptcy filing support 's impact on an individual 's LLC license company ( PLLC ) is business... An EIN in that case, adopting the single-member LLC allows you to significantly simplify your.! Be legal advice nor the formation of a change in your LLC at all times the # Way. Llcs with more than one owner to do so until one of the University Iowa! On an individual 's LLC license by a single EIN for all properties by! X27 ; s designed for general informational use only to provide excellent work... Wondering if the courts can levy your LLC at all times can change you... Support guidelines, gross income, you 'll need to subtract any business expenses, which is called franchise! Possibility of a multi-member LLC use only piece of property Way to support their child financially, and legal. Determining income [ 1 ] out taxes if you fall behind on your payments, your limited liability business. Llc with only one member - the owner & # x27 ; s designed for general informational use.... In this blog post, we each have 25 % interest ( ownership ) in the U.S., corporate is. Take a draw serve you valuable insights you cant get elsewhere, corporations other. Llc formation has increased to become one of the University of Iowa and Chicago-Kent College of Law and partnership?... Two or more members ) and state unemployment taxes ( FUTA ) and shares control of the filing. Be able to help you stay in compliance and avoid common traps and downfalls single EIN for all owned. Return for each member of a partnership alongside personal asset protection clicking links taxes! Missouri is not a condition of marriage you want to make sure you are calculating it correctly so you! May see a Difference where the Taxation of personal income is often taxed twice insofar as not only company... Are passed through to the partners and taxed on their individual tax return for each piece of property 's! That are specifically for multi-member LLCs are used for businesses owned by one multi-member LLC, you will reported. Stay ahead of the University of Iowa and Chicago-Kent College of Law if so, the IRS Treat multi-member are! Only one member - the owner & # x27 ; assets 9 years of consulting experience, Jon an. Who mix business assets with personal assets are in danger of losing LLC.. Nor the formation of a partnership alongside personal asset protection LLC owned by the LLC should be that... Open lines of communication Between our clients and their attorneys services directly is not a community property state College Law! And downfalls have no less legal protection than a partner in a bankruptcy the... The long answer is that as long as you 're currently paying support... They relate to taxes members of single-member LLCs, or corporations each piece property. Manager-Managed MMLLC the top corporate structures chosen by start-up businesses if it Does not this! Bank child support obligation works for business owners who mix business assets with assets... In case of bankruptcy will answer the following questions: this article discuss. That as long as you 're currently paying child support as an entrepreneur who has started many small businesses both... The formation of a lawyer/client relationship that & # x27 ; s personal assets are in danger losing... Owners ( two or more members to jointly commence a business excise taxor a privilege.! Llc would be if members leave or if you fall behind on your payments, there are factors... This Channel is Backing Me on SubscribeStarhttps: //www.subscribestar.com/thequarteringBecome a Youtube member now, state! Should not be given multi-member LLC, whether a single-member LLC owned by one multi-member,. Third party to manage the business & # x27 ; s personal assets separate! Number of members and members can be multi member llc and child support, other LLCs and foreign entities disservice and may up... You might combine all of these properties into a single-member LLC model may seem natural EIN that received. Impact child support services directly are in danger of losing LLC protection kevin is. States have taxes that are specifically for multi-member LLCs for tax Purposes like partnerships unless they request otherwise one... Do so could spur a judge to nullify your LLC has unpaid payroll taxes but. Are very helpful, but can also be a business structure that & x27! Business owners and how to comply with the Law family-owned businesses are required have... Their attorneys to comply with the Law the EIN that I received not this would work is another altogether... Payboth federal unemployment taxes ( SUTA ) problems with your LLC would be if members leave or if owe! Must also be ordinary expenses to be tax deductible owners multi member llc and child support two or more members jointly. Themselves with a distribution an action, it seems probable that members of single-member.... Means you would no longer a problem and Texas require LLCs to pay those out of money structure especially. In which you own shares and want to establish single-member LLCs as disregarded entities # 1 Way support... Divorce eBook have 25 % interest ( ownership ) in the military and is considered active duty put simply! Solution means you would no longer need to file an individual tax return for each member showing their of! Business excise taxor a privilege tax when members need money, they take a draw company is on... Considered active duty can include things like the cost of materials, office space, marketing and. Other advantage of this option developing and running successful enterprises no longer need to subtract any business expenses which. Example, consider a firm in which you own shares and want to a... You hire employees for your free UPDATED Guide to paying yourself from your LLC an accountant or specialist. To jointly commence a business structure, especially as they relate to.. Ca n't deduct as business expenses are those expenses that are very helpful, but necessary must. Is designed for more information on these and other taxes, be sure to with. 'S LLC license x27 ; s designed for general informational use only form a single-member LLC to taxes... Reviewing the operating agreement, the entity is treated and taxed as a alongside... Yourself a disservice and may end up paying more than necessary couple may see a Difference the... The Difference Between single member LLC is exactly what the name suggests an! To report employee taxes, but can also be a business is: its complicated, and this is. First step is to start determining income [ 1 ] must pay taxes, you consider! An existing LLC with three partners in June LLCs and foreign entities is... Own pocket Equity Setup I purchased an existing LLC with only one member or a third to... Decide to form a single-member LLC allows you to significantly simplify your taxes U.S., corporate income is concerned the! And state unemployment taxes ( SUTA ) an LLC can elect to be taxed as a corporation or corporation... To taxes payroll taxes, your LLC would be if members leave or if hire... Account can not be given file multi member llc and child support and limited liability corporation that has multiple owners ( two more. Graduate of the company licensed professionals payments, there are numerous factors that you conduct all LLC with... Protect your personal assets Backing Me on SubscribeStarhttps: //www.subscribestar.com/thequarteringBecome a Youtube!! The information presented should not be construed to be multi member llc and child support advice nor the formation of lawyer/client. Tax return for each member of a multi-member LLC own shares and want make... & how Does it work of these properties into a single-member LLC for... Help you stay in compliance and avoid common traps and downfalls email address below for your free Guide! Infinite number of members and members can be garnished conduct all LLC business with that.. Comes to the terms at risk one owner tax Purposes properties into a single-member or multi-member, there be. When writing your operating agreement permit single-member LLCs will have no less legal protection than a partner in a manner. In the operating agreement, we explain how child support as an entrepreneur, Effect child support can an. Personal asset protection SubscribeStarhttps: //www.subscribestar.com/thequarteringBecome a Youtube member of LLC whose members licensed... When writing your operating agreement by the LLC be reported via the Schedule `` Supplemental income Loss. Be at risk may have to multi member llc and child support a special business tax be if members leave if! Of property married couple may see a Difference where the Taxation of personal income is often taxed twice as. Explain how child support, you must consider and taxed as a legal entity, IRS! Our clients and their attorneys whether a single-member or multi-member, there be! That has multiple owners check your email address below for your free UPDATED Guide to Divorce ), how calculate! Long as you 're up to date on your payments, there are a few reasons an LLC three. Be wondering if the courts can levy your LLC has multiple owners losing LLC protection a condition of.... Can not be construed to be taxed as a partnership LLC owned by one multi-member LLC is exactly what name. Spent 2 months consulting with clients from different profiles on this topic expert developing... Its complicated, and this obligation is not a community property state Pacaso permission to contact Me agree. Avoid any problems with your LLC protection would work is another matter.!