In addition to the asset protecion benefits you have by having your assets under an offshore company, which makes it more difficult for creditors to find out and prove that you own the company, and also to sue you in a foreign jurisdiction, or to enforce a foreign judgement, Wyoming provides a Charging order as the sole and exclusive remedy available for the creditor. By adding a Wyoming LLC to the structure, you gain an additional layer of security, the charging order remedy.
What is a Charging Order?
A charging order is a legal mechanism that protects the ownership and internal management of a Wyoming LLC when a member (owner) has personal creditors. It ensures that creditors cannot seize control of the company or force its liquidation, making it one of the strongest forms of asset protection available in the U.S.
A Chargin Order gives a creditor the distributions of the LLC as the , that means:
The Creditor cannot control or manage the company.
The Creditor cannot obtain the Debtor’s Interest (ownership) in the LLC)
If the LLC does not make a distribution to the Debtor, the Creditor will not obtain a payment. The Creditor cannot force a Distribution Payment.
Wyoming Statutes §17-29-503
Wyoming Statutes §17-29-503 States that Charging orders “are the the exclusive remedy by which a person seeking to enforce a judgment against a judgment debtor, including any judgment debtor who may be the sole member, dissociated member or transferee, may, in the capacity of the judgment creditor, satisfy the judgment from the judgment debtor's transferable interest or from the assets of the limited liability company. Other remedies, including foreclosure on the judgment debtor's limited liability interest and a court order for directions, accounts and inquiries that the judgment debtor might have made are not available to the judgment creditor attempting to satisfy a judgment out of the judgment debtor's interest in the limited liability company and may not be ordered by the court.”
Jean Franco Fernandez Clark
Founder & CEO
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