This is the time of year when many of us are begrudgingly heading back to the office, longing for the days during the holiday season where we could stay at home and lay around in sweatpants. With the conclusion of the holiday break, hopefully you are returning back to work this new year with a rejuvenated energy and focus on your business. Many are utilizing these days in early January to organize the priorities and goals of our businesses for this upcoming year.
With the dawn of 2017, it is important for all limited liability companies who were formed in Alabama to be aware that the “new” LLC law is now in effect for all limited liability companies, irrespective of how long ago the company may have been formed. While the new LLC Act went into effect for newly-formed LLCs on Jan. 1, 2015, the law provides that the Act’s new provisions and requirements will be applicable to all LLCs as of Jan. 1, 2017 – regardless of when they were formed. Therefore, many companies across our state are coming into work this year under a new legal framework that governs how LLCs are to be operated.
The new Act provides its members and owners with a lot more flexibility in terms of how it can enter into contracts and operate its business. However, with this new-found freedom to contract, comes the increased need for LLCs and its membership to operate in compliance with the new law, as well as to comply with the need for company formalities in order to protect its members from individualized liability.
Below is a link to an article I drafted a while back addressing some of the changes that resulted from the enactment of the new LLC Act. You should seek counsel if you have any questions or concerns about whether your company is in compliance with the law or is in need of revision of its LLC documents. On behalf of the attorneys and staff here at Christian & Small, I wish you and your company a very healthy and profitable 2017.
- The Implications of Alabama’s New Limited Liability Act, by Christian & Small Partner Jonathan W. Macklem (October 2014)