Ohio has adopted a modified Limited Liability Company law which becomes effective on January 1, 2022 for all Ohio LLCs and foreign LLCs doing business in Ohio (Senate Bill 276).
One of the most important features of the new law is facilitation of the formation of so-called “series” LLCs. One benefit of a series LLC is that filing only one set of articles of organization permits formation of additional LLCs through internal mechanisms not necessitating additional filings. Series LLCs are often used by real estate investors who own multiple properties. It can provide for more flexible asset protection and isolation.
One frequent problem with LLCs is that principals fail to maintain and/or update the contact information for their statutory agent. The new law imposes penalties for LLCs that continuously fail in such maintenance. This may include cancellation of articles of organization.
The new law also clarifies what statutory provisions governing LLCs can be modified through private operating agreements.
This new law is yet another step in seeking to have newly formed businesses make Ohio their organizational home.
If you have any questions about this topic, please contact Dana Rose or your Weston Hurd attorney.