HB1004 Summary

• Corrects an inadvertent error in Acts 2021, No. 1041 by treating the repeal of the Small Business Entity Tax Pass Through Act as effective September 1, 2021 (rather than 90 days after April 28, 2021) to align with implementation of the Uniform Limited Liability Company Act.

• Ensures all limited liability companies formed or registered before September 1, 2021 retain their status without interruption and continue operating under the new Uniform Limited Liability Company Act on that date with no change in status.

• Ratifies and validates all actions taken by limited liability companies between July 27, 2021 and September 1, 2021 that would have been authorized under the repealed statute, including issuance of bonds, contracts, property transfers, and other transactions.

• Protects members and managers of pre-September 1, 2021 companies from personal liability to the same extent provided under the repealed statute, notwithstanding the repeal.

• Declares an emergency to ensure efficient and orderly transition of limited liability companies and avoid financial uncertainty during the statutory changeover period.