Connecticut House Bill HB05316

Connecticut 2015 Regular Session

• Introduced: 1/13/15
• Refer: 1/13/15

Caption

An Act Concerning The Establishment Of A Series Limited Liability Company.

Impact

The bill's passage would have significant implications for business owners and entrepreneurs looking to minimize liability and administrative costs. By permitting the establishment of series LLCs, the legislation opens opportunities for more efficient management of multiple investments or business ventures while maintaining separate liabilities. This could encourage businesses to operate within the state, potentially fostering economic growth and job creation via increased investments and formations of new enterprises.

Summary

House Bill 5316 proposes an amendment to chapter 613 of the general statutes, establishing the legal framework for series limited liability companies (LLCs) within the state. This type of business structure allows for the creation of individual series or sub-entities under a single LLC, offering management flexibility and distinct liability protections for each series. The introduction of series LLCs is aimed at attracting businesses looking for versatile and cost-effective methods of organization and liability management, particularly in sectors such as real estate holdings and investment planning.

Contention

While the bill appears to have the support of many business interests who value the flexibility and distinct liability protection provided by series LLCs, there may be concerns regarding regulatory oversight and the potential for misuse in evading responsibilities. Some lawmakers might argue that without stringent regulations, series LLCs could be exploited for asset protection inappropriately. Therefore, discussions surrounding the bill may focus on balancing the benefits of new business structures with the need for consumer protection and regulatory compliance.