COLUMBUS—State Senators Kristina Roegner (R-Hudson) and Nathan Manning (R-North Ridgeville) announced today that the Senate passed Senate Bill 276, which 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.
"It is important that we provide an updated and modern legal framework for Ohio's businesses," Roegner said. "This bill will specifically help LLCs operate with more clarity and thus more efficiently. While the language of the legislation might appear dry, 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.
“LLCs are incredibly important to Ohio’s economy, and we want to make sure that Ohio remains a place where they can continue to thrive and operate,” Manning said.
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.
Senate Bill 276 will now go to the House for consideration.