[fountainofage]

The examples cited are how the courts pierced the LLC veil to satisfy someone's personal liabilities. This seems like it's unavoidable because no matter how you split it up, the courts will seize your assets to pay that liability - the effect would be the same if the courts just grabbed the owner's stake in the LLC's.

Your example is what most people think of - LLC's shielding each other and the owners.

I'm mostly pointing out that the parent comment's link is a bit of a boogeyman in that you could have a perfectly structured LLC system, and if you are personally criminally negligent and liable to pay, then the courts will still get your stakes in the LLC's.

[Schweigi]

That’s why the operating agreement of the LLC should have a charging order protection. It discourages reverse piercing. A charging order protection will allow the LLC to stop distributions to a member who lost such a court case.

In case of an LLC taxed as a partnership the creditor will need to pay the taxes as stated on the K1 but doesn’t receive actual money. Obviously this will make it very unattractive to the creditor to go for a charging order on your membership in the first place.