Connecticut House Bill HB05275

Connecticut 2017 Regular Session

• Introduced: 1/6/17
• Refer: 1/6/17

Caption

An Act Permitting The Formation Of Series Limited Liability Companies In The State.

Impact

If enacted, HB 5275 would significantly alter the landscape of business operations in the state by providing a new legal framework for LLCs. This change would not only facilitate the growth of small and medium enterprises but would also attract larger businesses looking for innovative corporate structures that allow for risk management. The introduction of series LLCs may lead to increased economic activity as businesses gain more options for structuring their operations in a manner that is both financially prudent and legally sound.

Summary

House Bill 5275, introduced by Rep. Cummings, aims to amend Title 34 of the general statutes to allow for the formation of series limited liability companies (LLCs) within the state. The intent behind this legislation is to enhance the business environment by making it more cost-effective for new businesses to operate. By enabling the series LLC structure, the bill provides flexibility for businesses to segregate assets and liabilities across different series while operating under a single entity, thus streamlining management and regulatory compliance.

Contention

While the bill has supporters who argue that it promotes a business-friendly climate, there are potential concerns regarding the complexities it could introduce into the legal framework governing LLCs. Opponents may argue about the regulatory challenges that could emerge from allowing series LLCs, particularly in ensuring compliance and protecting creditors. The bill's proponents will need to address these concerns to ensure that the benefits of this new structure do not come at the cost of financial transparency or accountability.