Deer have great night vision, but they can’t see some colors, like orange and red! If you’ve ever wondered why hunters wear bright orange when tramping through the wilderness, this is the answer. Not only does the neon color protect them from snipers who might mistake them for an elk or coyote, but it also makes them essentially invisible to deer. Why does this work? Well, deer have dichromatic vision, meaning they see color differently than humans who have trichromatic vision. Here’s how Field & Stream explains the difference in our eyesight: “Just like the human eye, a deer’s eye contains rods and cones. Rods work to absorb light and cones are for seeing color and distinguishing details. The human eye is packed with cones, which help us see a pile of different colors and spot fine detail. A deer’s eye is packed with rods, which help the animal see in low light, but it has far fewer cones, so a deer’s ability to see some colors — like blaze orange — is compromised.” Deer see the world almost exclusively in green, yellow, and blue. In their eyes, an orange vest will blend in with green leaves, but a blue coat will stand out like neon! Keep that in mind next time you pack up for a hunting trip like Elliott’s. Did You Know?
Is Your Company Safe From Charging Orders?
What to Know About This Creditors’ Weapon
When creditors pursue a judgment against a debtor who owns a business, the courts issue a charging order. This
authorizes a lien against distributions from a limited liability company (LLC). It’s important to understand how these orders work and what they could mean for your LLC and its members, partners, and owners. LLCs provide liability and asset protection that other entities do not, including protection from some aspects of charging orders for multi-member LLCs. The same guidance in this article also applies to corporations, limited partnerships, and other entity types. WHAT CHARGING ORDERS DO Charging orders allow creditors to claim a debt from an individual who receives payments out of an LLC they are a partner or owner of. The creditor seizes the money owed to them through a lien against distributions paid out directly to the individual named in the charging order. Some states, including California, allow creditors to foreclose on a debtor’s membership interest in an LLC with the use of court judgments. This creates a significant risk for single- member LLCs that have no other partners to prevent the complete liquidation of the company and for multi-member LLCs who want to distribute assets out to the owners. Charging orders also have tax consequences. While the distribution goes to the creditor, the tax bill stays with the member in most cases. HOW LLCS PROTECT AGAINST CHARGING ORDERS If you have a multi-member LLC, it will protect other members from the debt of a lone member. Ensuring your LLC has a buy- out clause for members adds an additional layer of protection should a member’s debts disrupt company operations. The lone protection single-member LLCs get from charging orders is that this does not expose company or personal assets to any form of liability. A charging order can only target distributions, so if the debt does not represent a large portion of the interest in the LLC, your company can survive. It’s best to work with an attorney before you’re faced with a charging order. Our experienced lawyers can help you optimize your asset protection strategies to either avoid or prepare for the circumstances we described.
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