https://www.wolterskluwer.com/en/expert-insights/what-states-protect-single-member-llcs
Changing order protection and asset protection
Single-member LLC asset protection can also be jeopardized if a changing order protection is imposed by a creditor on distributions from the business entity. A charging order is a court-authorized lien that protects non-debtor members of an LLC from being forced into partnership with the owner’s creditor.
However, because a single-member LLC has just one owner, there are no non-debtor members to protect. Subsequently, the business can be liquidated, and the proceeds used to satisfy a judgment claim by the creditor.
Certain states, including Alaska, Delaware, Nevada, South Dakota, and Wyoming, have amended their LLC laws to ensure that single-member LLCs have the same protection from creditors as multi-member LLCs. Meanwhile, in Florida and New Hampshire, LLC laws have been changed to limit the liability protection of single-member LLCs compared with multi-member LLCs.
