Nevada Charging Order Protection: NRS § 86.501

NRS § 86.501 explained

Nevada Revised Statutes § 86.501 provides that a charging order is the exclusive remedy by which a judgment creditor of a member may satisfy a judgment from the member\\\'s interest in the LLC. Like Wyoming, Nevada makes the charging order the exclusive remedy — creditors cannot foreclose on the membership interest, seize LLC assets, or become a substitute member.

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Why Nevada\\\'s case law matters

Nevada has more reported court decisions interpreting and applying charging order protection than most states. This deeper case law provides greater predictability for asset protection planning. Attorneys who specialize in asset protection often prefer Nevada because they can cite specific cases demonstrating how courts will treat various creditor strategies.

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Nevada vs Wyoming charging order

Both states provide exclusive remedy charging order protection for single-member LLCs. Wyoming\\\'s protection is statutory (§ 17-29-503(a)). Nevada\\\'s is statutory (NRS § 86.501) with deeper case law. For most practical purposes, the protection is equivalent. The choice between them is typically cost (Wyoming wins) vs case law depth (Nevada wins).

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When charging order protection fails

Neither Nevada nor Wyoming charging order protection protects against: IRS federal tax liens, fraudulent conveyance claims (assets transferred to defeat known creditors), fraud-based veil piercing, or court orders in criminal proceedings. Charging order protection is powerful but not absolute.