Texas House Bill HB1624

Texas 2013 - 83rd Regular

Caption

Relating to the assumed name of a series limited liability company.

Impact

The enactment of HB 1624 is expected to streamline operations for series limited liability companies, enabling them to create distinct customer-facing identities while maintaining their legal protections. This legal flexibility is likely to benefit entrepreneurs and small business owners who might otherwise struggle with the complexities of establishing brand identity in compliance with existing regulations. The specific inclusion of series LLCs ensures that Texas remains competitive and appealing as a state for business formation, given the increasing prevalence of such companies in various industries.

Summary

House Bill 1624 amends the Texas Business and Commerce Code regarding the assumed names of series limited liability companies (LLCs). This legislation explicitly addresses how these companies can represent themselves under names that differ from those stated in their formation documents. The changes clarify the definition of 'assumed name' to include provisions for series LLCs—a type of limited liability company that allows for the creation of multiple, separate classes of entities under one umbrella organization. By affirming the legitimacy of assumed names for these entities, the bill facilitates easier management and branding for businesses operating under these structures.

Contention

There are minimal noted points of contention associated with HB 1624, as it primarily serves to clarify existing law and facilitate better business practices. However, discussions around business regulations continue to evolve, and stakeholders in the legal and business community may watch how the implementation of these changes affects compliance requirements. The bill received unanimous support in the House, indicating a general consensus on the need for this legal clarification.