Keeping owners, managers, and stakeholders up to date on issues affecting their businesses.
In Wisconsin, as in most other states, when a creditor obtains a judgment against a member of an LLC, the court may issue a “charging order,” under which the court charges the member’s LLC interest with payment of the unsatisfied amount of the judgment.
The old proverb is that the best time to plant a tree was 20 years ago and the second best is now. The same might be said for getting your business ready to sell. There may be even more reasons to do so in today’s environment. Following are five reasons owners may wish to consider selling now.
In Marx v. Morris, 2019 WI 34, 386 Wis. 2d 122, 925 N.W.2d 112, the Wisconsin Supreme Court addressed the question of whether an LLC member has standing to assert a claim against another member of the same LLC based on an injury suffered primarily by the LLC (rather than by the individual member asserting the claim). That is, can an LLC member bring a claim on behalf of the LLC itself, or are they limited to "derivative claims," as are shareholders in a corporation? The court concluded that members do have standing to assert individual claims against other members and managers of the LLC based on harm to the LLC itself (in addition to claims based on harm to the individual member) and are not limited to derivative claims.