Connecticut House Bill HB06647

Connecticut 2017 Regular Session

• Introduced: 1/24/17
• Refer: 1/24/17

Caption

An Act Concerning The Establishment Of Series Limited Liability Companies.

Impact

The proposed changes from HB 6647 would significantly impact state laws governing business formations. By allowing series LLCs, the bill provides a legal framework for individuals to manage various assets under one entity while ensuring that liabilities associated with each subentity do not adversely affect the umbrella company or other subentities. This could lead to increased business activity, particularly in real estate, as property owners would benefit from enhanced liability protections and simplified management of their properties.

Summary

House Bill 6647 seeks to amend the general statutes to allow for the establishment of series limited liability companies (LLCs). This form of business structure enables an individual or entity to create an 'umbrella' LLC under which multiple subentities can operate, with each subentity possessing the same legal protections as the primary LLC. The bill is designed to streamline the process for property owners and entrepreneurs who manage multiple properties or business entities, allowing for greater flexibility and legal protection across different ventures.

Contention

While the bill presents substantial benefits, there may be notable points of contention regarding how such a structure could be implemented within existing legal frameworks. Proponents argue that the series LLC structure is beneficial for businesses that operate multiple entities and can lead to economic growth. However, concerns from legal experts and industry stakeholders may arise related to potential regulatory challenges and the need for clarity in tax implications for series LLCs. Additionally, there may be discussions on whether existing laws adequately address the liabilities and operational requirements of these newly established entities.