Assemblymen John J. Burzichelli and Scott T. Rumana on Tuesday announced they’ve introduced bipartisan legislation to make New Jersey more attractive for businesses and more competitive for good-paying jobs. The bill modernizes the rules governing the formation of Limited Liability Companies in New Jersey.
Burzichelli and Rumana are both members of the Red Tape Review Commission formed to find ways to eliminate unnecessary regulation and help stimulate economic development.
“Streamlining the ways companies can form in New Jersey is a smart step toward increased job creation and economic growth,” said Burzichelli, an Assembly deputy speaker (D-Gloucester/Salem/Cumberland). “Common sense bills like this to make it easier for business to grow and prosper in our state are what’s needed to help navigate through this difficult economy. After all, stronger businesses mean better jobs for New Jersey residents.”
“This is another solid bipartisan idea to cut red tape and spur the economy,” said Rumana, the Assembly Republican Deputy Conference Leader (R-Bergen/Essex/Passaic). “Modernizing New Jersey’s Limited Liability Statute will encourage more companies to form in New Jersey rather than other states. This will improve our reputation as a good state to do business in and lead to more private-sector jobs without costing taxpayers one dime.”
The bill would modernize regulations for creating and operating LLCs – a form of unincorporated business organization that provides corporate-style limited liability to its owners with partnership-like capacity.
Significant changes would include:
· Eliminating the default and overlooked rule that LLCs have a limited duration;
· Allowing LLC operating agreements to be oral, written or implied;
· Allocating profits and losses on a per capita basis; and
· Providing remedies when members of a company act in an oppressive or harmful way to other members. TLS.