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Ohio Appeals Court Says LLC Must Identify Its Members

By Ken Laino on August 25, 2015
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Some states require public disclosure about LLC owners/managers/officers and others do not.  Ohio is one of the states that requires no such public disclosure. 

But keep in mind that ultimately, a creditor can always discover who the owners and managers are.  Once a lawsuit is filed, the identity of the members, managers and/or officers will almost always be a discoverable item.  A court can ultimately order that disclosure if requested to do so by the plaintiff.  There is no absolute right to keep ownership/management information confidential. 

This was recently confirmed by an Ohio appeals court.  In Block Communications, Inc. v. Pounds, (Ohio App. 6 Dist.) 2015-Ohio-2679, the Court ruled that Ohio LLC law neither expressly nor implicitly creates a protectable interest in preserving the confidentiality of members’ identities.  In other words, Ohio law does not require disclosure about Members when Articles of Organization are filed with the Ohio Secretary of State; but identity of the Members can be obtained through a valid lawsuit.

This is a reminder that asset protection does not involve hiding assets and other information.  While confidentiality plays a part in asset protection, its main goal is to legitimately protect assets from the reach of creditors – – even when creditors know exactly where the assets are and how they are held.

  • Posted in:
    Corporate & Commercial, Corporate Finance
  • Blog:
    Asset Protection Law Journal
  • Organization:
    Schneider Smeltz Spieth Bell LLP
  • Article: View Original Source

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