Back to Blog
Charging Order Protection: The Ultimate Asset Protection Strategy for LLC Owners
Published on February 15, 2026
A basic LLC might not protect you. Without charging order protection, creditors can force sale of your business.
What Is a Charging Order?
Legal remedy for judgment creditors—can receive distributions but cannot force sale.
The Problem
In some states, creditors can foreclose and sell your interest.
Solution: Charging Order Protection
States with strong protection: Delaware, Wyoming, Nevada, Arizona, Texas.
How to Get Protection
- Form LLC in protected state
- Operating agreement provisions
- Separate entity formalities
Series LLC: Enhanced Protection
Multiple series—each with separate assets. Liabilities of one do not affect others.
Conclusion
Charging order protection is essential. Form LLC in protected state with proper operating agreement.
Disclaimer: Consult professionals.
Have Questions?
If you have any questions, just book a call with our team. We're here to help you build lasting wealth.
Brandt Hudson
CEO of Infinite Wealth Group