If you own a business through a Limited Liability Company (LLC) and owe child support, you may be wondering: Can child support enforcement agencies garnish an LLC bank account?
The short answer: Yes — under certain conditions, child support enforcement can garnish income from an LLC, especially if the obligated parent is receiving payments or hiding personal income through the business.
In this article, we’ll break down:
- How child support enforcement works with LLCs
- When an LLC account can be garnished
- What types of income are subject to garnishment
- How to protect your LLC legally
- What to do if you’re behind on child support
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Can Child Support Garnish an LLC Account?
Yes, but it depends on how the LLC is structured and how the obligated parent is compensated.
While an LLC provides legal separation between the business and its owners, family courts have the power to look beyond that structure (known as “piercing the veil”) when enforcing child support orders.
Here’s how garnishment may occur:
- If the parent is paid wages or distributions through the LLC
- If the LLC is a single-member LLC where the parent controls finances
- If the parent is using the LLC to hide or reduce reportable income
In such cases, the court or child support agency can intercept income or compel payment from LLC accounts.
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Types of LLC Income Subject to Garnishment
1. W-2 Wages from the LLC
– If the parent is on payroll, child support can garnish wages directly
2. Distributions (Profits)
– If the parent receives regular draws or profit distributions, courts can order garnishment
3. Self-Employment Income
– LLC income reported on Schedule C (sole proprietors) or K-1 (multi-member LLCs) can be considered personal income for support calculations
4. Single-Member LLC Accounts
– Courts may treat these as personal accounts, especially if commingling occurs
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When Can Child Support Access the LLC’s Bank Account?
Courts or child support enforcement may be able to garnish or levy an LLC bank account if:
- The obligated parent is the sole owner and uses the account for personal expenses
- There’s evidence of hiding or misrepresenting income
- The parent ignores support orders or fails to disclose full earnings
- A court judgment or lien is obtained against the LLC for unpaid support
That said, courts are less likely to garnish funds used solely for business operations unless wrongdoing is proven.
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How to Protect an LLC From Child Support Garnishment
While child support must be paid, here are ways to maintain clear legal boundaries:
- Keep personal and business finances 100% separate
- Do not pay personal bills from the LLC account
- Use formal payroll if you’re an employee of the LLC
- Maintain clean accounting and documentation
- Comply with child support orders proactively
Trying to avoid child support by funneling income through an LLC can lead to serious legal consequences — including contempt of court, seizure of assets, and jail time.
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What If You’re Behind on Child Support?
If you’ve fallen behind on payments and operate an LLC, take action quickly:
- Contact the child support enforcement office to discuss repayment options
- Hire a family law attorney if your income has changed significantly
- Keep detailed financial records and business expenses
- Do not hide income — courts take that seriously
Voluntary cooperation shows good faith and can help prevent aggressive enforcement actions.
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Important Legal Note
Even though LLCs provide limited liability for business debts, they do not shield you from:
- Family court judgments
- Personal liability for child support
- Court-ordered wage garnishments or income levies
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Can an LLC Be Named in a Child Support Lawsuit?
In rare cases, yes — if the LLC is alleged to be involved in fraud, income hiding, or is the direct source of payments.
However, courts usually focus enforcement on the individual parent, not the business entity, unless misuse is suspected.
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Final Thoughts
Yes — child support enforcement can garnish income from an LLC when appropriate. Courts prioritize the well-being of children over business protections, especially if the parent is using the LLC to avoid financial responsibility.
The best way to stay protected is to:
- Stay current on support obligations
- Maintain strict separation between business and personal finances
- Report all income transparently
Need help forming or structuring your LLC properly? FormLLC helps you stay compliant with federal and state regulations — and we’ll connect you with trusted legal professionals if needed.
