COLUMBUS—On Friday the Governor signed Senate Bill 276, legislation sponsored by State Senators Kristina Roegner (R-Hudson) and Nathan Manning (R-North Ridgeville), that would update and modernize Ohio’s Limited Liability Company Act (LLC Act), providing entrepreneurs and other business owners new opportunities and incentives to locate and grow in Ohio.
“As Limited Liability Corporations are a critical component to Ohio’s overall economy, it is important that we do all we can to ensure that these businesses have a legal framework that is efficient, transparent and makes common sense,” Roegner said. "I am pleased to see this legislation signed into law, it is very exciting to be able to help Ohio’s economy with these needed reforms."
Since it became an option more than 25 years ago, the number of LLCs has ballooned in Ohio. In fact, 73.5 percent of the state’s active business entities are now LLCs. And in 2019 alone, more than 87,500 new LLCs formed in Ohio – that is 88 percent of all the new business entities filed for that year (the remainder being corporations and partnerships). Despite growing popularity of LLCs among business owners, Ohio law has not kept pace with the significant evolutions in business and investing. Though minor tweaks have been made over the years, no major revision has been undertaken – until now.
"The enactment of SB 276 modernizes Ohio's LLC statutes to make them more consistent with the laws of other states and gives job creators more flexibility on how they organize their businesses," said Kevin Shimp of the Ohio Chamber of Commerce. "Taken together, the reforms in SB 276 will make it easier to operate a business in the Buckeye State and help push Ohio's business climate forward."
Ohio’s original LLC Act was adopted by the Ohio General Assembly in 1994, providing a more flexible option for forming companies in the state. The LLC appeals to business owners of all shapes and sizes as it accommodates a variety of ownership structures while at the same time, protecting the personal assets of its owners and providing a tax efficient method of organization.
Learn more about Senate Bill 276 by clicking here.