February 6, 2014
Are you an LLC? The "Revised Act" of NJ May Have Important Effects on You.
The Revised Uniform Limited Liability Company Act of New Jersey (the “Revised Act”) became effective as of March 18, 2013. The Revised Act amends the existing law with respect to operating agreements, member relations, entity duration and other various aspects of limited liability companies (“LLCs”). It is important to note that certain aspects of the Revised Act could impact allocations of profit and loss to LLC members for income tax purposes. For New Jersey LLCs formed after March 18, 2013, the provisions of the Revised Act will govern upon formation. For pre-existing New Jersey LLCs, the entities continue to be governed by the prior version of the New Jersey Limited Liability Company Act, however; please take note that the Revised Act will apply to such entities effective March 1, 2014.
Although it is beyond the scope of our practice to provide you with legal advice regarding this revision to the New Jersey Limited Liability Company, as clients of Wiss & Company we believe that it is important for us to alert you to this significant change in the law. Accordingly, if you believe this change in the law impacts you in any way, we highly recommend that you contact legal counsel promptly to obtain the proper legal advice and guidance on how these changes to the New Jersey Limited Liability Act may affect you.
If you have any questions, please contact Mike Bodrato, Tax Director, Wiss & Company, LLP.