Limited Liability Companies Governing Law

Section 1 of the act deletes the requirement that a partner's contribution to a limited liability company is a prerequisite to becoming a member of the company. Section 2 clarifies that the tax status of a limited liability company does not affect the immunity of a member of the company from liability for the company's acts. Section 3 limits the applicability of the statute of frauds, which requires certain contracts to be written to be enforceable, to operating agreements for limited liability companies. Section 4 reconciles the various partnership and limited liability company acts regarding compensation of a partner for services performed during the windup of the entity's affairs.

(Note: This summary applies to this bill as enacted.)