What is a charging order?

What is a charging order?

A charging order is a legal remedy that allows a creditor of an LLC member to place a lien on the member's economic interest (their right to receive distributions).

In states with strong protections like Wyoming, this is the exclusive remedy. The creditor cannot seize the underlying assets of the LLC, force a sale, or participate in management. They can only wait to receive distributions, which the LLC may choose not to make.