Sole Member Limited Liability Companies and the LLC Charging Order

The Fund’s title insurance commitment requirement to confirm the authority of the individual designated to bind an LLC includes the requirement to determine if the LLC is a sole member LLC:

Confirm the authority of the individual designated to bind the LLC by the laws of its jurisdiction of formation, and where the authority is not confirmed by public records, record appropriate evidence of authority. If the LLC is a sole member LLC, provide the name of the sole member for review. The Company reserves the right to make further requirements. (emphasis added).

The purpose of the requirement to disclose whether the LLC is a sole member LLC is to determine if the LLC may be exposed to judgment creditors of the sole member due to the statutory distinction between multi-member and sole member LLCs in the application of charging orders as provided by Sec. 605.0503, F.S. Read the article