Brief⁽¹⁾

S.B. 472 amends the limited liability company law to permit one person to form such a company; to shift the presumption that the company would be dissolved upon the death, retirement, resignation, expulsion, bankruptcy, or dissolution of a member to a presumption that the company would continue in existence unless otherwise provided in the operating agreement; and to otherwise clarify when a company would be dissolved.

Background

The bill was recommended by the Tax, Probate, and Corporation sections of the Kansas Bar Association. The bill was suggested as a result of a change in federal tax regulations which now permit a person to "check-a-box" regarding how they want to be taxed either as a corporation or as a partnership regardless of how the entity is legally organized. The bill also conforms Kansas law regarding limited liability companies to Missouri law which permits a company to be formed by one person. The bill was supported by the Kansas Association of Realtors.

The bill has no fiscal impact.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.