New L.L.C. Act Clarifies Rules For Small Businesses

About 120,000 Granite Staters — almost 10 percent of the state’s population — are members of an LLC, or Limited Liability Corporation.  But too many LLCs fail because of internal disputes, says John Cunningham, a Concord lawyer and expert on LLCs.  On January 1, a revised LLC act that was signed by Governor Lynch in June goes into effect.

Cunningham was the principal author of the initial LLC law, and chaired the commission that drafted the new act’s revisions. He says the purpose of the new act is two-fold.

First, he says, the “most important purpose is to make the act as user friendly as possible for small New Hampshire businesses.”  The other purpose, Cunningham says, “is to make it as flexible as possible so you can tailor your arrangements with your partners to the maximum extent.”

The new law goes into effect for newly formed LLCs in the new year, and is optional for existing LLCs until January of 2014.


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