In March 2013, the New Jersey Revised Uniform Limited Liability Act (RULLCA) was signed into law. RULLCA makes significant changes to existing laws governing Limited Liability Companies (LLCs).
Of major significance,
– RULLCA establishes several “default” provisions in such key areas as LLC governance, voting and allocation, and distribution of profit and loss. In cases where an LLC’s operating agreement is silent on RULLCA issues, or no operating agreement exists, the RULLCA default provisions will govern. In those cases where an operating agreement exists, and it addresses RULLCA issues, the operating agreement overrides RULLCA.
– RULLCA goes into effect for all existing LLCs (those created on or before MARCH 17, 2013) on March 1, 2014. Existing LLCs that do not like the RULLCA default provisions have up to February 28, 2014, to modify their existing operating agreements if needed, or to create new operating agreements, that will override these RULLCA provisions.
– RULLCA will apply to new LLCs created on or after March 18, 2013. In cases where new LLCs wish to be exempt from RUULCA default provisions, alternative provisions must be incorporated into their operating agreements.
Getting Legal Help
Experienced Tax Attorney, Elga Goodman, can work with you to assess how RULLCA can benefit your LLC. She can assist you in modifying existing operating agreements or creating new ones to optimize benefits. Contact us today at 973-841-5111.
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