(TRENTON) – A measure sponsored by Assemblymen John J. Burzichelli that would make New Jersey more attractive for businesses and more competitive for good-paying jobs was advanced by an Assembly panel on Thursday.
The bill (A-4359) would modernize the rules governing the formation of Limited Liability Companies in New Jersey.
Burzichelli is a member 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, Chair of Assembly Regulatory Oversight and Gaming Committee (D-Gloucester/Salem/Cumberland). “Common sense bills like this to make it easier for businesses 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.”
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.
The bill was approved by the Assembly Regulatory Oversight and Gaming Committee by a vote of 5-0 and now awaits consideration by the full Assembly.
