Avoiding Wage Garnishment
The Florida Asset Protection Blog has an interesting article on the advantages of being paid as an independent contractor over an employee when you are an unmarried debtor who does not support minor children. Generally wages are exempt form wage garnishment when the person is married or supports minor children.
This is one of the reasons why a properly structured Florida limited liability company (LLC or L.L.C.)can provide more protection than a Florida corporation. While both the Florida Limited Liability Company and the Florida Corporation can protect personal assets from liability that is created by the company, a Florida LLC can also protect the company assets from the personal liabilities of the owners or members.
Jonathan Alper goes on to state that a unmarried debtor who does not support minor children is subject to wage garnishment and garnishment of the independent contractor fees. A wage garnishment will stay in place for all future wages while a separate writs of garnishment needs to be obtained each time the employer is going to make a payment to the debtor. It is difficult for the creditor to anticipate payments to the independent contractor and to serve a writ prior to each payment.
You should speak to a Florida Business Formation Lawyer about setting up a Florida Limited Liability Company or converting your Florida Corporation to increase your asset protection.
