Question 9.   Why do you tend to use Nevada, Wyoming or Oklahoma as the Resident Agent for limited liability companies and family limited partnerships?

Answer.   For non-business operations, we tend to use one or more of these particular states because their statutes expressly limit a creditor's remedy SOLELY to a charging order against a member or partner. In addition, the states of both Nevada and Wyoming have no income or death tax structure and, thus, there is slightly more privacy due to the absence of state tax returns. It is important to keep in mind that even when a creditor is limited to a charging order, nevertheless, he can petition the court and may be successful in obtaining some further restrictions on the operations of the LLC or the FLP. Therefore, because of the LLC manager's restriction on distributing profits when a charging order is imposed, relying solely on an LLC for asset protection is only a short-term solution and, thus, could become untenable over a prolonged period of time.