Over many years, the limited liability company (“LLC”) has generally become the legal entity of choice for new businesses and new ventures for existing businesses. In the hopes of becoming a more attractive state for business formation, Ohio adopted a new regulatory scheme for the formation and operation of Ohio limited liability companies which becomes effective on February 11, 2022.
The new LLC law seeks to create increased flexibility in terms of management of an Ohio LLC, as well as its operations, purposes and the like. Most intriguing and of potential interest to entrepreneurs, investment managers and real estate concerns is the concept of forming so-called “series” limited liability companies. The utility of using series LLCs depends upon the circumstances surrounding the given venture, however, the law does clarify how foreign limited liability companies, including series LLCs, will be treated in Ohio. This is of particular interest to real property ventures which are already using foreign series LLC formats for properties in Ohio.
The Ohio Secretary of State has promulgated a number of new or modified forms which must be used for filings made on or after February 11, 2022.
The introduction of the new Ohio LLC statute presents a logical time for the review of LLC operating agreements and governance matters.
Please contact Dana Rose or your Weston Hurd attorney if you have questions about this topic.