The Ohio Revised Limited Liability Company Act (“LLC Act”) took effect on February 11, 2022, and now governs all limited liability companies formed under Ohio law. The LLC Act replaced Chapter 1705 of the Ohio Revised Code with Chapter 1706 of the Ohio Revised Code. In part, the LLC Act permits the formation of “Series LLCs,” clarifies fiduciary duties, removes default indemnification of members and managers, modifies the default rules for sharing of distributions among members, and provides flexibility for management structure and authority. Now that the LLC Act is effective for all Ohio limited liability companies, it is recommended to revisit your company’s operating agreement and to ask an attorney to determine whether it is advisable to update any of its provisions.

The LLC Act can be found here.