New Jersey first promulgated Limited Liability Company (“LLC”) laws in 1993. The New Jersey Company Act, N.J.S.A. 42:2B-1, et. seq., provided that LLCs were of a limited duration. In other words, they automatically ended after a defined period of time that was set forth by the operating agreement or by the statute (if there was no operating agreement). The Revised Uniform Limited Liability Company Act changes the duration of an LLC. All LLCs formed after March 18, 2013 will have a perpetual duration. As I’ve stated in previous blog posts, if the LLC was formed before March 18, 2013, the Members may opt in to be covered by the new law. If they do not opt in, then the LLC will have perpetual duration after March 1, 2014.
Scott Unger is a Shareholder in Stark & Stark’s Lawrenceville, New Jersey office concentrating in Shareholder & Partner Dispute Litigation. For questions, or additional information, please contact Mr. Unger.