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Where’s Your LLC Safest? A State-by-State Look at Charging Orders

Where’s Your LLC Safest? A State-by-State Look at Charging Orders

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This chart breaks down how every U.S. state handles charging orders against LLC members. It shows the exact statute for each state and, more importantly, how much protection that state gives an LLC owner from creditors. Some states make foreclosure easy (high risk), some block it entirely (strong protection), and others leave it vague (courts decide). Use it as a quick reference guide to see where your state stands—or to compare states if you’re deciding where to form your LLC. For deeper guidance on what this means for your business, contact LLC Attorney and speak with a Business Success Advisor at LLCAttorney.com.

Download the chart as a PDF here

Where’s Your LLC Safest? – Charging Orders Table
State Citation Category
AlabamaALA. CODE § 10A-5A-5.03Best Shield – Foreclosure not allowed
AlaskaALASKA STAT. § 10.50.380Best Shield – Foreclosure not allowed
ArizonaARIZ. REV. STAT. ANN. § 29-655Best Shield – Foreclosure not allowed
ArkansasARK. CODE ANN. § 4-32-705Gray Area – Law doesn’t say if foreclosure allowed
CaliforniaCAL. CORP. CODE § 17705.03Most Risky – Creditors can foreclose
ColoradoCOLO. REV. STAT.Most Risky – Creditors can foreclose
ConnecticutCONN. GEN. STAT. 34-171Most Risky – Creditors can foreclose
DelawareDEL. CODE. ANN. § 18-703Best Shield – Foreclosure not allowed
District of ColumbiaD.C. CODE ANN.Most Risky – Creditors can foreclose
FloridaFL. STAT. ANN.Best Shield – Foreclosure not allowed
GeorgiaGA. CODE. ANN.Best Shield – Foreclosure not allowed
HawaiiHAW. REV. STAT. ANN. § 428-504Gray Area – Silent on foreclosure
IdahoIDAHO CODE ANN. § 30-25-503Most Risky – Creditors can foreclose
Illinois805 ILCS 180/30-20Most Risky – Creditors can foreclose
IndianaIND. CODE. ANN.Gray Area – Silent on foreclosure
IowaIOWA CODE ANN. § 489.503Most Risky – Creditors can foreclose
KansasKAN. STAT. ANN. 17-76,113Gray Area – Silent on foreclosure
KentuckyKY. REV. STAT. ANN. § 275.260Most Risky – Creditors can foreclose
LouisianaLA. REV. STAT. ANN. § 1331Gray Area – Silent on foreclosure
MaineME. REV. STAT. ANN. tit. 31 § 1573Best Shield – Foreclosure not allowed
MarylandMD. CODE. ANN. CORPS. & ASS’NS § 4A-607Most Risky – Creditors can foreclose
MassachusettsMA. GEN. LAWS ANN. Ch 156C, § 40Gray Area – Silent on foreclosure
MichiganMICH. COMP. LAWS 450.4507Best Shield – Foreclosure not allowed
MinnesotaMINN. STAT. § 322C.0503Most Risky – Creditors can foreclose
MississippiMISS. CODE. ANN. § 79-29-705Gray Area – Silent on foreclosure
MissouriMO Rev Stat § 347.119 (2024)Gray Area – Silent on foreclosure
MontanaMONT. CODE. ANN. 35-8-705Most Risky – Creditors can foreclose
NebraskaNEB. REV. STAT. § 21-142Most Risky – Creditors can foreclose
NevadaNEV. REV. STAT. 86.401Solid Protection – Statute doesn’t allow but doesn’t clearly ban foreclosure
New HampshireN.H. REV. STAT. § 304-C:126Best Shield – Foreclosure not allowed
New JerseyN.J.S.A. 42:2C-43Best Shield – Foreclosure not allowed
New MexicoN.M. STAT. § 53-19-35Gray Area – Silent on foreclosure
New YorkN.Y. Ltd. Liab. Co. Law § 607Gray Area – Silent on foreclosure
North CarolinaN.C. GEN. STAT. § 57D-5-03Gray Area – Silent on foreclosure
North DakotaN.D. CENT. CODE ANN. § 28-25-12Most Risky – Creditors can foreclose
OhioOHIO REV. CODE ANN. § 1706.342Best Shield – Foreclosure not allowed
OklahomaOKLA. STAT. ANN. tit. 12, § 1506Best Shield – Foreclosure not allowed
OregonOR. REV. STAT. § 63.259Gray Area – Silent on foreclosure
PennsylvaniaNone – LLC Law of 1994 doesn’t cover thisN/A – No charging order statute
Rhode IslandR.I. GEN. LAWS § 7-16-37Gray Area – Silent on foreclosure
South CarolinaS.C. CODE ANN. § 33-44-503Most Risky – Creditors can foreclose
South DakotaS.D. CODIFIED LAWS § 47-34A-504Best Shield – Foreclosure not allowed
TennesseeT. C. A. § 48-249-509Gray Area – Silent on foreclosure
TexasV.T.C.A., BUS. ORG. COD. § 101.112Best Shield – Foreclosure not allowed
UtahUTAH CODE ANN. § 48-3a-503Most Risky – Creditors can foreclose
VermontVT. STAT. ANN. tit. 11A, § 503Most Risky – Creditors can foreclose
VirginiaVA CODE ANN § 13.1-1041.1Solid Protection – Statute doesn’t allow but doesn’t clearly ban foreclosure
WashingtonWASH. REV. CODE ANN. § 25.15.245Gray Area – Silent on foreclosure
West VirginiaW. VA. CODE § 31B-5-504Most Risky – Creditors can foreclose
WisconsinW.S.A. 183.0705Gray Area – Silent on foreclosure
WyomingWYO. STAT. ANN.Best Shield – Foreclosure not allowed

Download the chart as a PDF here

Author
Andrew Pierce

Andrew Pierce is CEO of LLC Attorney and oversees multiple organizations that serve the business formation market. Under Andrew's leadership, his corporate brands have helped individuals to start more than 70,000 new businesses. Andrew co-founded LLCAttorney with his father, attorney Mark Pierce, to provide robust business formation and operational services. He travels the world engaging in business conferences. With a background in corporate structuring, Andrew combines his personal experience and professional expertise to help entrepreneurs succeed.