Overview of Wisconsin Business Law Changes
The state of Wisconsin revised business laws this year. The new Wisconsin Uniform Limited Liability Company Law takes effect January 1, 2023. Existing LLCs must opt out by December 31, 2022 or switch. The new law removes stating management in articles. However, third parties can no longer check publicly filed documents on LLC management.
Operating Agreements in Wisconsin
The new law says operating agreements may include items Wisconsin law used to require in written agreements. Operating agreements may also be unwritten – through oral discussion, implied understanding, or examining company records. Still, experts recommend written agreements to reduce confusion, disputes, and risks.
Importance of Operating Agreements
Customizing operating agreements allows handling unique business needs over state default rules. Having an agreement shows committing to a professional business. While not every LLC must adopt one, experts highly recommend agreements in Wisconsin after the law change. They demonstrate properly managing an enterprise and outline structure, guidelines, processes, and responsibilities.