House Bill 16-1329 Summary

• Amends the definition of "contribution" in Colorado's LLC law to clarify that contributions are made to "become" a member rather than as a "prerequisite to becoming" a member.

• Establishes that an LLC's federal tax classification does not affect its status as a distinct legal entity under Colorado law.

• Exempts operating agreements from statute of frauds requirements, though written provisions specifically required by the article must still be in writing.

• Provides that LLC members are not entitled to compensation for services except for reasonable compensation for winding up the company's business.

• Takes effect 90 days after final adjournment of the general assembly (August 10, 2016) unless subject to a referendum petition.