The charging order protection allows you to make a hostile creditor responsible for taxes although he didn’t yet receive a distribution from your LLC. The hostile creditor thinks he won but quickly recognizes that he must now pay taxes on income not yet received. This process is explained below.
For this charging order protection to be most effective, the LLC must
Have at least two (2) members [Important!] Managers can be people or another business.
Be taxed as a partnership
Management by a manager, not the members. [Important!]