1 of 1 SENATE DOCKET, NO. 1939 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 295 The Commonwealth of Massachusetts _________________ PRESENTED BY: Nick Collins _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to a business entity. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Nick CollinsFirst Suffolk 1 of 17 SENATE DOCKET, NO. 1939 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 295 By Mr. Collins, a petition (accompanied by bill, Senate, No. 295) of Nick Collins for legislation relative to a business entity. Economic Development and Emerging Technologies. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE SENATE, NO. 224 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to a business entity. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Section 45 subsection (1) of chapter 108A of the General Laws, as 2appearing in the 2022 Official Edition, is hereby amended by striking the words “federal 3employer identification number of the partnership”. 4 SECTION 2. Section 45 of chapter 108A of the General Laws, as so appearing, is hereby 5further amended by striking subsection (6) and inserting in place thereof the following 6subsection:- 7 (6) If a partnership fails to file an annual report when due, pay the required fee, or the 8payment of any fee due the commonwealth was dishonored when presented for payment and the 9partnership has failed to make payment within 20 days after written notice of such failure was 10mailed to the partnership, the state secretary may revoke the registration of the partnership. If the 2 of 17 11state secretary determines one of more grounds exist for revoking the registration of the 12partnership, he shall notify the partnership of his determination. The notice shall be sent in 13writing and mailed postage prepaid to the office of the partnership as shown in the records of the 14secretary of state, or if the partnership consents, sent by electronic mail to an electronic email 15address furnished by the partnership for such purpose. If the partnership has appointed a resident 16agent pursuant to section 45A, the written notice shall be mailed postage prepaid to the office of 17the partnerships resident agent, or if the resident agent consents, sent by electronic mail to an 18electronic mail address furnished by the agent for such purpose. The notice shall specify the 19annual reports which have not been filed and the fees which have not been paid. If the 20partnership does not correct each ground for revocation or demonstrate to the reasonable 21satisfaction of the state secretary that each ground determined by the secretary of state does not 22exist within 60 days after notice is given, the state secretary shall administratively revoke the 23registration of the partnership. 24 SECTION 3. Chapter 108A of the General Laws, as so appearing, is hereby further 25amended by adding after section 45 the following new sections:- 26 Section 45A. Resident Agent. 27 A limited liability partnership may appoint a resident agent which agent may be an 28individual resident of the commonwealth, a domestic corporation or domestic limited liability 29company, a foreign corporation registered to do business in the commonwealth, or a foreign 30limited liability company registered to do business in the commonwealth. 31 Section 45B. Change of Resident Agent. 3 of 17 32 (a) A limited liability partnership may change its resident agent or the street address of 33the resident agent by filing a certificate of change of agent or address with the state secretary. 34The statement shall contain the following information: 35 (1) the name of the limited liability partnership; 36 (2) the name and street address of the current resident agent; 37 (3) if the current resident agent is to be changed, the name and street address of the new 38resident agent and the new agents written consent to the appointment, either on the statement or 39attached to it; and 40 (4) if the street address of the business office of the resident agent is to be changed, the 41new street address of the business office of the resident agent. 42 (b) If a resident agent changes the street address of his business office, he may change the 43street address of the business office of any limited liability partnership for which he is a resident 44agent by notifying the limited liability partnership in writing of the change and signing, either 45manually or by facsimile, and delivering to the state secretary for filing a statement of change 46that complies with the requirements of subsection (a) and recites that the limited liability 47partnership has been notified of the change. If the street address of more than one limited 48liability partnership is being changed at the same time, there may be included in a single 49certificate the names of all the limited liability partnerships the street address of which are being 50changed. 51 (c) Any resident agent may resign his agency appointment by signing and delivering to 52the state secretary a certificate of resignation. The resident agent shall furnish a copy of the 4 of 17 53statement to the limited liability partnership. The agency appointment shall be terminated on the 54thirty-first day following the date on which the statement was filed. 55 SECTION 4. Chapter 108A of the General Laws, as so appearing, is hereby further 56amended by adding the following new section after section 49: 57 Section 50. Correcting a Filed Certificate 58 (a) A limited liability partnership may correct a document filed with the state secretary if 59the document: 60 (1) contains a typographical error or an incorrect statement ; or 61 (2) was defectively executed, attested, sealed, verified or acknowledged. 62 (b) A document is corrected: 63 (1) by preparing a certificate of correction that (i) describes the document, including its 64filing date, (ii) specifies the typographical error, the incorrect statement and the reason it is 65incorrect or the manner in which the execution was defective and (iii) corrects the typographical 66error, incorrect statement or defective execution; 67 (2) by delivering the certificate of correction to the state secretary for filing. 68 (c) A certificate of correction is effective on the effective date of the document it corrects 69except as to persons relying on the uncorrected document and adversely affected by the 70correction. As to those persons, the certificate of correction is effective when filed. 71 (d) A certificate of correction cannot be used to change the effective date of a filed 72document, provided however, that if a document has been filed with a delayed effective date, a 5 of 17 73certificate of correction may be filed prior to said date to accelerate the effective date to a date 74not earlier than the dated of the certificate of correction. 75 (e) The filing fee for a certificate of correction is $100.00. 76 SECTION 5. Section 13 of chapter 109 of the General Laws, as appearing in 2022 77Official Edition is hereby amended by striking subsection (a) and inserting in place thereof the 78following subsection:- 79 (a) A signed copy of the certificate of limited partnership and of any certificate of 80amendment or cancellation, or any judicial decree of amendment or cancellation, shall be 81delivered to the secretary of state. A person who executes a certificate as an agent or fiduciary 82need not exhibit evidence of his authority as a prerequisite to filing. Unless the secretary of state 83finds that the certificate does not conform to law, upon receipt of all filing fees required by law, 84he shall evidence his approval on or with the document. Upon such approval and payment of all 85filing fees required by law, the filing shall be deemed to be filed with the state secretary. 86 SECTION 6. Chapter 109 of the General Laws, as so appearing, is further amended by 87adding after section 13 the following new section:- 88 13A. Correcting a Filed Certificate 89 (a) A domestic or foreign limited partnership may correct a document filed with the state 90secretary if the document: 91 (1) contains a typographical error or an incorrect statement; or 92 (2) was defectively executed, attested, sealed, verified or acknowledged. 6 of 17 93 (b) A document is corrected: 94 (1) by preparing a certificate of correction that (i) describes the document, including its 95filing date, (ii) specifies the typographical error, the incorrect statement and the reason it is 96incorrect or the manner in which the execution was defective and (iii) corrects the typographical 97error, incorrect statement or defective execution; and 98 (2) by delivering a certificate of correction to the state secretary for filing. 99 (c ) A certificate of correction is effective on the effective date of the document it corrects 100except as to persons relying on the uncorrected document and adversely affected by the 101correction. As to those persons, the certificate of correction is effective when filed. 102 (d) A certificate of correction cannot be used to change the effective date of a filed 103document; provided, however, that if a document has been filed with a delayed effective date, a 104certificate of correction may be filed prior to said date: 105 (1) to accelerate the effective date to a date not earlier than the date of the certificate of 106correction; or 107 (2) to abandon a merger or amendment if the authority to do so is granted by the merger 108agreement or the persons approving the amendment. 109 (e) The filing fee for a certificate of correction is $100.00. 110 SECTION 7. Chapter 109 of the General Laws is hereby further amended by striking 111section 16 in its entirety. 7 of 17 112 SECTION 8. Section 55 of chapter 109, as so appearing, is hereby amended by adding 113the following new subsection:- 114 (c ) A foreign limited partnership is liable to the commonwealth for the years or years 115during which it transacted business in the commonwealth without delivering to the state 116secretary for filing the certificate required by section 49, an amount equal to: 117 (1) all fees which would have been imposed by law had it duly delivered the certificate; 118and 119 (2) all interest and penalties imposed by law for failure to pay the fees. A foreign limited 120partnership is further liable to the commonwealth, for each month or part thereof during which it 121transacted business without delivering the certificate, an amount determined by the state 122secretary, which shall in no event exceed the amount established by the Commissioner of 123Administration under section 3B of Chapter 7, except that a foreign limited partnership which 124has delivered such certificate shall not be liable for such monthly penalty for the first ten (10) 125days during which it transacted business without delivering such certificate. Such fees and 126penalties may be leveled by the state secretary. The attorney general may bring an action 127necessary to recover amounts due the commonwealth under this subsection including an action 128to restrain a foreign limited partnership against which fees and penalties have been imposed 129pursuant to this subsection from transacting business in the commonwealth until the fees and 130penalties have been paid. 131 SECTION 9. Section 64 of chapter 109 is hereby amended by striking out subsections (a) 132and (b) and inserting in place thereof the following subsections:- 133 (a) the state secretary may commence a proceeding to dissolve a limited partnership if: 8 of 17 134 (1) the limited partnership has failed for 2 or more consecutive years to comply with the 135laws requiring the filing of annual reports; 136 (2) payment of any fee due the commonwealth was dishonored when presented for 137payment and the limited partnership has failed to make payment within 20 days after written 138notice of such failure was mailed to the limited partnership; or 139 (3) he is satisfied that the limited partnership has become inactive and its dissolution 140would be in the public interest. 141 (b) If the state secretary determines the one or more grounds exist for dissolving a 142limited partnership, he shall notify the partnership’s resident agent of his determination. The 143notice shall be sent in writing and mailed postage prepaid to the resident agent’s office, or if the 144resident agent consents, sent by electronic mail to an email address furnished by the agent for 145such purpose. The notice shall specify the annual reports which have not been filed, the fees 146which have not been paid and the payment which has been dishonored. If the partnership does 147not correct each ground for dissolution or demonstrate to the reasonable satisfaction of the state 148secretary that each ground determined by the state secretary does not exist within 90 days after 149notice is given, the state secretary shall administratively dissolve the limited partnership. 150 SECTION 10. Section 65 of chapter 109 is hereby amended by striking out subsections 151(a) and (b) and inserting in place thereof the following subsections:- 152 (a) The state secretary may commence a proceeding to revoke the authority of a foreign 153limited partnership to transact business in the commonwealth if: 9 of 17 154 (1) the foreign limited partnership has failed for 2 or more consecutive years to comply 155with the laws requiring the filing of annual reports; 156 (2) payment of any fee due the commonwealth was dishonored when presented for 157payment and the foreign limited partnership has failed to make payment within 20 days after 158written notice of such failure was mailed to the foreign limited partnership; or 159 (3) he is satisfied that the revocation of the limited partnerships authority to transact 160business in the commonwealth would be in the public interest. 161 (b) If the state secretary determines that one or more grounds exist to revoke the authority 162of the foreign limited partnership to transact business in the commonwealth, he shall notify the 163foreign limited partnership’s resident agent of his determination. The notice shall be sent in 164writing and mailed postage prepaid to the resident agent’s office, or if the resident agent consents 165sent by electronic mail to an email address furnished by the agent for such purpose. The notice 166shall specify the annual reports which have not been filed, the fees which have not been paid and 167the payment which has been dishonored. If the partnership does not correct each ground for 168dissolution or demonstrate to the reasonable satisfaction of the state secretary that each ground 169determined by the state secretary does not exist within 90 days after notice is given, the state 170secretary shall administratively revoke the authority of the limited partnership to transact 171business in the commonwealth. 172 (c) The authority of the foreign limited partnership to transact business in the 173commonwealth shall cease on the date on which the state secretary makes such revocation 174effective. 10 of 17 175 SECTION 11. Chapter 109, as so appearing, is further amended by adding the following 176new section after section 66:- 177 Section 67. Good Standing 178 A limited partnership shall be deemed to be in good standing with the state secretary if 179such limited partnership appears, from the records of the said secretary, to exist and has paid all 180feed due the commonwealth, and no certificate of cancellation has been filed by or with respect 181to the limited partnership. Upon the request of any person and payment of such fee as may be 182prescribed by law, the state secretary shall issue a certificate stating, in substance, as to any 183limited partnership meeting the requirements of this section, that such limited partnership 184appears, from the records of his office to exist and to be in good standing, and stating the identity 185of any and all general partners who are named in the most recent document filed with the state 186secretary. 187 SECTION 12. Section 17 of chapter 156A of the General Laws as appearing in the 2022 188Official Edition, is hereby amended by striking out paragraph (a) and inserting in place thereof 189the following paragraph:- 190 (a) A foreign professional corporation shall register under the provisions of this section if 191the corporation would be required to incorporate under this chapter if it organized in the 192commonwealth and 193 (1) it maintains an office in the commonwealth; or 11 of 17 194 (2) any of its shareholders, officers, or directors conducts activity on behalf of the 195corporation in the commonwealth as to require licensing under the provisions of chapter one 196hundred and twelve or chapter two hundred and twenty-one. 197 SECTION 13. Section 17 of chapter 156C if the General Laws, as so appearing, is hereby 198further amended by striking subsection (a) and inserting in place thereof the following 199subsection:- 200 (a) The original signed copy of the certificate of organization and of any certificates of 201amendment or cancellation or any judicial decree of amendment or cancellation, of any 202certificate of consolidation, merger or conversion and of any restated certificate shall be 203delivered to the state secretary. A person who executes a certificate as an attorney-in-fact or 204fiduciary shall not be required to exhibit evidence of his authority as a prerequisite to filing. 205Unless the secretary finds that any certificate does not conform to law, upon receipt of all filing 206fees required by law, he shall evidence his approval on or with the document. Upon said 207approval and payment of all fees required by law, the filing shall be deemed filed with the state 208secretary. Said endorsement shall be conclusive of the date and time of its filing in the absence of 209actual fraud. 210 SECTION 14. Chapter 156C of the General Laws, as so appearing, is further amended by 211adding, after section 17, the following new section:- 212 Section 17A. Correcting a Filed Certificate 213 (a) A domestic or foreign limited liability company may correct a document filed with the 214state secretary if the document: 12 of 17 215 (1) contains a typographical error or an incorrect statement; or 216 (2) was defectively executed, attested, sealed, verified or acknowledged; 217 (b) A document is corrected: 218 (1) by preparing a certificate of correction that (i) describes the document including its 219filing date, (ii) specifies the typographical error, the incorrect statement and the reason it is 220incorrect or the manner in which the execution was defective and (iii) corrects the typographical 221error, incorrect statement or defective execution; and 222 (2) by delivering the certificate of correction to the state secretary for filing. 223 224 (c) A certificate of correction is effective on the effective date of the document it corrects 225except as to persons relying on the uncorrected document and adversely affected by the 226correction. As to those persons, the certificate of correction is effective when filed. 227 (d) A correction cannot be used to change the effective date of a filed document; 228provided, however, that if a document has been filed with a delayed effective date, a certificate 229of correction may be filed prior to said date: 230 (1) to accelerate the effective date to a date not earlier than the date of the certificate of 231correction, or 232 (2) abandon a merger or amendment if the authority to do so is granted by the merger or 233the persons approving the amendment. 234 (e) The fee for filing a certificate of correction with the state secretary is $100.00 13 of 17 235 SECTION 15. Section 48 of chapter 156C of the General Laws, as so appearing is hereby 236amended by adding, after clause 5, the following new clause:- 237 (5A) the name of the person in addition to any manager who is authorized to execute 238documents to be filed with the office of the state secretary, and at least one shall be named if 239there are no managers. 240 SECTION 16. Section 54 of chapter 156C, as so appearing, is amended by striking 241paragraph (a) and inserting in place thereof: 242 (a) A foreign limited liability company is liable to the commonwealth for the years or 243parts of years during which it transacted business in the commonwealth without delivering to the 244state secretary for filing the certificate required by section 48, an amount equal to:- 245 (1) all fees which would have been imposed by law had it duly delivered the certificate; 246and 247 (2) all interest and penalties imposed by law for failure to pay the fees. A foreign limited 248liability company is further liable to the commonwealth, for each year or part thereof during 249which it transacted business without delivering the certificate an amount not exceeding $500.00 250except that a foreign limited liability company which has delivered such certificate shall not be 251liable for such penalty for the first 10 days during which it transacted business without delivering 252such certificate. Such fees and penalties may be levied by the state secretary. The attorney 253general may bring an action necessary to recover amounts due to the commonwealth under this 254subsection including an action to restrain a foreign limited liability company against which fees 255and penalties have been impose pursuant to this subsection from transacting business in the 256commonwealth until the fees and penalties have been paid. No such failure shall affect the 14 of 17 257validity of any contract involving the foreign limited liability company, nor is a member or 258manager of a foreign limited liability company liable for the obligations of the foreign limited 259liability company solely by reason of such failure, but no action shall be maintained or recovery 260had by the foreign limited liability company in any courts of the commonwealth as long as such 261failure continues. The failure of a foreign limited liability company to register with the state 262secretary shall not prevent the foreign limited liability company from defending any action, suit 263or proceeding in any of the courts of the commonwealth. 264 SECTION 17. Chapter 156C, as so appearing, is hereby amended by striking section 70 265and inserting in place thereof: 266 Section 70. Administrative Dissolution; notice; wind up and liquidation of affairs 267 (a) The state secretary may commence a proceeding to dissolve a limited liability 268company if: 269 (1) the limited liability company has failed for two consecutive years to comply with the 270law requiring the filing of annual reports; or 271 (2) the payment of any fee due the commonwealth was dishonored when presented for 272payment and the limited liability company has failed to make payment within 20 days after 273written notice of such failure was mailed to the limited liability company; or 274 (3) he is satisfied that the limited liability company has become inactive and its 275dissolution would be in the public interest. 276 (b) If the state secretary determines that grounds exist under subsection (a), he shall 277notify the limited liability company of his determination. The notice shall be sent in writing and 15 of 17 278mailed postage prepaid to the office of the limited liability company’s resident agent or if the 279resident agent consents, sent by electronic mail to an electronic mail address furnished by the 280agent for such purpose. The notice shall specify the annual reports which have not been filed and 281the fees which have not been paid. If the limited liability company does not correct each ground 282for dissolution or demonstrate to the reasonable satisfaction of the state secretary that each 283ground for dissolution does not exist within 90 days after notice is given, the state secretary shall 284administratively dissolve the limited liability company. 285 (c ) A limited liability company administratively dissolved continues in existence but 286shall not carry on any business except that necessary to wind up and liquidate its affairs. 287 SECTION 18. Chapter 156C, as so appearing, is hereby amended by striking section 72 288and inserting in place thereof:- 289 Section 72. Revocation of foreign limited liability company’s authority to transact 290business in commonwealth; grounds; notice; effective date 291 (a) The state secretary may commence a proceeding to revoke the authority of a foreign 292limited liability company to transact business in the commonwealth if: 293 (1) the foreign limited liability company has failed for two consecutive years to comply 294with the laws requiring the filing of annual reports; or 295 (2) the payment of any fee due the commonwealth was dishonored when presented for 296payment and the foreign limited liability company has failed to make payment within 20 days 297after written notice of such failure was mailed to the foreign limited liability company; 16 of 17 298 (b) If the state secretary determines that grounds exist under subsection (a) , he shall 299notify the foreign limited liability company of his determination. The notice shall be sent in 300writing and mailed postage prepaid to the office of the foreign limited liability company’s 301resident agent, or if the resident agent consents, sent by electronic mail to an electronic mail 302address furnished by the agent for such purpose. The notice shall specify the annual reports 303which have not been filed and the fees which have not been paid. If the foreign limited liability 304company does not correct each ground for revocation or demonstrate to the reasonable 305satisfaction of the state secretary that each ground for revocation does not exist within 90 days 306after notice is given, the state secretary shall administratively revoke the authority of the foreign 307limited liability company to transact business in the Commonwealth. 308 (c ) the authority of the foreign limited liability company to transact business in the 309commonwealth shall cease on the date on which the state secretary makes such revocation 310effective. 311 SECTION 19. Section 1.20 of chapter 156D, as appearing in the 2022 Official Edition is 312hereby amended by striking paragraph (h) and inserting in place thereof the following:- 313 (h) The document shall be delivered to the office of the state secretary for filing and shall 314be accompanied by the correct filing fee and any payment or penalty required by this chapter or 315other law. 316 SECTION 20. Section 14.20 of chapter 156D, as so appearing, is hereby amended by 317striking Clause (b) and inserting in place thereof:- 318 (b) the state secretary is satisfied that the corporation has become inactive and its 319dissolution would be in the public interest; or 17 of 17 320 (c) payment of any fee due the commonwealth was dishonored when presented for 321payment and corporation has failed to make payment within 20 days after written notice of such 322failure was mailed to the foreign limited liability company; 323 SECTION 21. Section 14.23 of chapter 156D, as so appearing, is hereby amended by 324striking subsection (a) and inserting in place thereof the following subsection:- 325 (a) If the state secretary denies a corporation’s application for reinstatement following 326administrative dissolution, he shall provide the corporation with a written notice that explains the 327reason or reasons for denial. 328 SECTION 22. Section 15.30 of chapter 156D, as so appearing, is hereby further amended 329by striking said section and inserting in place thereof:- 330 Section 15.30 Grounds for Revocation 331 The state secretary may commence a proceeding under section 15.31 to revoke the 332authority of a foreign corporation to transact business in the commonwealth if: 333 (a) the foreign corporation has failed for two or more consecutive years to comply with 334the law regarding the filing of reports with the state secretary or the filing of tax returns or the 335payment of any taxes under chapter 62C or chapter 63 for two or more consecutive years; or 336 (b) the payment of any fee due the commonwealth was dishonored when presented for 337payment and the corporation has failed to make payment within twenty days after written notice 338of such failure was mailed to the corporation.