Proposed Revision of Washington's Limited Liability Company Act – SB 5030

The Washington Limited Liability Company Act (the “Current Act”) was first adopted in 1994.  It has been revised several times in order to address specific issues, most recently in the 2014 Regular Session of the Legislature.  The Current Act has not been the subject of comprehensive review and revision since its original enactment.  The experiences of other states, and the experiences of business attorneys in Washington, have shown that the Current Act should be updated and modernized.  The bill pending in the current legislative session was developed under the auspices of the Washington State Bar Association Business Law Section and is intended to make the Limited Liability Company Act more flexible and user-friendly, and to eliminate or modify provisions that create unnecessary problems for business people forming and operating LLCs.

The basic features of the proposed legislation are summarized in a memorandum from the Business Law Section and Partnership and LLC Law Committee, which is available here.  The legislative history and the entire proposed bill is available here.