Legislation was passed and sent to the governor May 14 that would give LLC businesses an option to organize as a “series” or distinct operating units of assets. The bill is HB 510, sponsored by Rep. Noel Torpey.
Under a series arrangement, each series operates similarly to a single LLC. The debts, liabilities, and obligations incurred by a particular series are enforceable only against the individual series and not against any of the other series or operating units. Also, any of the individual series may be dissolved without having to dissolve any other series or the entire LLC.
The Missouri Chamber is supportive of the bill believes that series LLC business structures in Missouri are good public policy. Allowing set up as series LLCs provides Missouri with a more innovative approach and makes our state a more attractive place for businesses to locate.
“Currently, five border states; Illinois, Iowa, Kansas, Oklahoma and Tennessee, which we compete with to attract businesses and jobs, allow series LLCs,” said Alex Curchin, Missouri Chamber general counsel and director of governmental affairs. “The passage of this bill allows a holding company to more efficiently allocate their resources in the setup of the company and treat its entities as distinct while retaining administrative control of the business.”
For more information on this issue, contact Curchin at firstname.lastname@example.org, or by phone at 573-634-3511.