Changes in Wisconsin LLC Laws
The state of Wisconsin has revised its business laws with the Wisconsin Uniform Limited Liability Company Law taking effect on January 1, 2023. Existing LLCs must decide whether to stay under current laws or switch to the new laws by December 31, 2022. If no action is taken, the new act will be applicable next year.
One of the changes is the removal of the requirement to state in articles whether an LLC is member or manager-managed. Along with this, access to information on LLC management through publicly filed documents will be restricted.
Importance of Operating Agreements
Operating agreements now have the flexibility to include items that Wisconsin law previously required in written agreements. The law also allows for unwritten operating agreements; however, experts recommend written agreements to mitigate confusion, disputes, and risks.
Customizing operating agreements offers advantages over basic templates, allowing for tailored solutions to unique business needs and preferences.
Benefits of Implementing Operating Agreements
Experts highly recommend implementing operating agreements in Wisconsin post-law change as they demonstrate proper management of an enterprise, outline internal structure, guidelines, processes, and member responsibilities for smoother operations and protection of owner rights.