Louisiana Senate Bill SB746

Louisiana 2012 Regular Session

• Introduced: 4/4/12
• Engrossed: 4/10/12
• Refer: 4/11/12
• Report Pass: 5/7/12
• Enrolled: 5/21/12
• Chaptered: 6/1/12
• Passed: 6/1/12

Caption

Provides relative to the manner of converting the state of organization of domestic and foreign limited liability companies. (1/1/13)

Impact

Implementation of SB 746 is expected to streamline the process for LLCs wishing to change their state of organization, thereby enhancing business flexibility and opportunities for entrepreneurs. By formalizing the conversion process, businesses can maintain continuity of their legal status and obligations without interruption during such transitions. This change in the state's legal framework could encourage more companies to establish or relocate to Louisiana, potentially boosting economic activity.

Summary

Senate Bill 746 focuses on the conversion of the state of organization for both domestic and foreign limited liability companies (LLCs) in Louisiana. The bill outlines specific procedures that LLCs must follow to change their state of organization to another state or to recognize a conversion from another state to Louisiana. Key provisions include requirements for member approval, the filing of a certificate of conversion with the Secretary of State, and compliance with applicable laws from both the existing and new states of organization.

Sentiment

The sentiment surrounding SB 746 appears to be generally positive among legislators and business advocates. Supporters argue that the bill simplifies business operations, making it easier for entities to adjust their legal status based on their operational needs. Additionally, the proposed changes are seen as a proactive step to foster a more business-friendly environment in Louisiana. There may be concerns from some quarters about the complexities that could arise in multi-state operations, but overall enthusiasm for easing administrative burdens prevails.

Contention

While the discussion around SB 746 has largely been supportive, there may be points of contention regarding the specific requirements for member approval and the potential implications for LLCs in other states. Critics could argue about ensuring adequate protections for members during the conversion process, and whether the bill sufficiently addresses these issues. Additionally, variations in state laws could lead to complications if not properly managed, which advocates of the bill may need to address to alleviate broader concerns.