New Jersey's new LLC law – the New Jersey Revised
Uniform Limited Liability Company Act (RULLCA) – already
applies to any LLC formed on or after March 18, 2013, and will
apply to all LLCs, both new and old, on March 1, 2014. The
following are some key changes to this law:
Distributions
Assume owner A contributes $90,000 and owner B contributes
$10,000 to an LLC. They may expect to share profits on a 90/10
basis, which was the case under the old law. However, under the new
law, they share profits on a 50/50 basis.
Voting
Assume owner C joins the LLC by contributing $10,000. Owner A,
contributing nearly 82 percent of the capital, may think that he or
she makes all of the decisions for the LLC, which was true under
the old law. However, under the new law each owner has an equal
vote, and decisions are made by the majority of the owners. As a
result, owners B and C can outvote owner A, 2-1, although they own
only 18 percent of the LLC. Also, any major decisions,
