Saturday, August 14, 2010

Bad Facts Make for Bad Law

The Florida Supreme Court recently issued an opinion in the Olmstead case that does not bode well for small business owners in Florida.  The result in the case was appropriate based on the circumstances – a couple of small business owners scammed thousands of consumers out of millions of dollars. But the rule of law that emerges means that single member owners of limited liability companies are now exposed to the claims of creditors, whereas they were not so exposed prior to this ruling.

Our firm has for years recommended the “single-member LLC” as a preferred vehicle for small business owners because of the many benefits afforded by this form of entity.  However, the Olmstead decision now casts a dark shadow on this choice of entity.  Fortunately, there are alternatives available with proper planning. If you or someone you know has a single member (or even a few member) Florida limited liability company, we recommend that you contact us for an appointment to discuss alternatives, or contact another experienced practitioner in this area of the law.

FURTHER READING ON THIS TOPIC:

The Olmstead opinion

Tampa Tribune article