Rep. McCarty Supports Pro-Business LLC Legislation

HARTFORD – State Rep. Kathleen McCarty (R-38), member of the Tourism Caucus, Saturday applauded the unanimous House passage of a pro-business bill she co-sponsored to create more uniform laws governing limited liability companies (LLCs) and attract businesses to the state.

HB 5259 – An Act Concerning Adoption of the Connecticut Uniform Liability Company Act – clarifies the rights and obligations of LLC managers and members in a more user-friendly format and creates a uniform set of rules for LLCs established without written operating agreements or formed without the aid of counsel.

“At a time when so many mandates are weighing down our businesses, I was happy to support this legislation knowing that it will provide them some relief and support,” said Rep. McCarty. The updated language of this bill will provide companies and entrepreneurs with greater legal protections, allow them to streamline administration and reduce costs to become more attractive to those looking to establish or expand business within our state.”

The law also adds more detailed provisions on fiduciary duties, changes when company owners (referred to as members) can be removed for unprofessional conduct, and changes rules governing mergers between LLCs, including LLCs from jurisdictions outside Connecticut.

These changes were strongly supported by the Secretary of the State’s office, Connecticut Bar Association and the Connecticut Business and Industry Association (CBIA) – which has worked for several years on this important issue.

The bill now awaits action in the Senate. The legislative session ends at midnight on Wednesday, May 4.

Rep. McCarty represents the 38th district of Waterford and Montville.