LLC Laws Varies by State

There is no one national body of LLC law.  The LLC (also known as a limited liability company) is a creature of state law.

Each state passes its own set of legal provisions that govern the formation, governance, operation and dissolution of this kind of legal entity.

Having said this, most states started with a standard set of LLC provisions which is called a uniform statute.  They then amended and added to it to make a state specific body of law that the legislature felt was proper.

Because of this, the procedures and other provisions that apply to an LLC vary by state.  Some are more onerous than others.  Some provide more privacy than others.  Some impose more fees than others.

As with any law, the differences are the result of what the government feels is important, providing trade offs between constituencies and political considerations.

While there are variations in formation and administrative procedural requirements, one thing common in most state LLC laws is that the law, with some limited exceptions, allows the members or managers of a ttp to define their own set of governance procedures, limitations and rules.

If you want to review the LLC laws in your state, you will likely find it by googling [your state] limited liability company act.  Some states have named their laws something different (like California where the LLC law is known as Beverly Killea Limited Liability Company Act) but this google search will work for most states.

Filed under: General LLC Information

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