Wisconsin Business Law Updates
The state of Wisconsin revised its business laws with the new Wisconsin Uniform Limited Liability Company Law taking effect on January 1, 2023. Existing LLCs must choose to stay under current laws or switch by December 31, 2022. If no action is taken, the new act automatically starts next year.
The new law brings significant changes to LLC regulations, including removing the requirement to state the management structure in articles. This eliminates the need to amend articles to change management, although third parties cannot access publicly filed information on LLC management anymore.
Operating agreements under the new law can now incorporate provisions that were previously required to be in written agreements under Wisconsin law. While operating agreements may be unwritten, experts recommend having written agreements to mitigate confusion, disputes, and risks.
Advantages of Customized Operating Agreements
Customizing operating agreements offers benefits over using generic templates by addressing specific business needs and terms beyond state default rules, demonstrating commitment to operating a professional business.
Experts highly recommend LLCs in Wisconsin to adopt written operating agreements post the law change as a means of properly managing their enterprise. These agreements outline structure, guidelines, processes, and responsibilities, ultimately ensuring smoother operations and protecting owner rights.