Statutes governing limited liability companies, or LLCs, vary considerably from state to state. In our opinion, Indiana’s statute is already among the best in the country, and a bill introduced in the 2013 session of the Indiana General Assembly proposes several changes that would make it even better for small business owners, particularly family-owned businesses. Among other things, HB 1394, introduced by Rep. Greg Steuerwald (R Avon) would:
- Eliminate the possibility that a creditor of a member can take over the member’s voting rights
- Allow a membership interest to be held in joint tenancy with the right of survivorship
- Allow a membership interest to be designated as “transfer on death” property
- Expressly provide for LLC officers
Later posts will discuss these proposed changes in more detail, including a few suggestions for possible revisions to the bill that would make it even better. In the meantime, however, small business owners in Indiana may want to contact their state representatives and senators urging them to support HB 1394.
If you have a small business, do you know what would happen to it if you were to die or become disabled? If not, feel free to contact our office to make an appointment for an initial consultation with our Business Law Division in Fishers Office Suites near I-69 and 116th Street.