Florida’s revised Limited Liability Company Act (the “New LLC Act”) overhauls the state's existing laws governing Limited Liability Companies (LLCs). Under the New LLC Act, Limited Liability Companies formed prior to Jan. 1, 2014 were granted a one-year transition period whereby they will not be governed by the New LLC Act until Jan. 1, 2015, unless they choose to “opt in” before that date. One important impact of the New LLC Act is that after Jan. 1, 2015, certain material provisions often found in an existing LLC operating agreement will become unenforceable.
Regardless of whether an existing Limited Liability Company voluntarily elects to opt in prior to 2015, or wait until later in the year, a thorough review of its articles of formation and current operating agreement is strongly advised to ensure compliance with the New LLC Act and to assess the impact on the entity and its owners.
For more information on Florida’s Revised Limited Liability Company Act and how it may impact your business, please contact:
Alan M. Burger