Keeping owners, managers, and stakeholders up to date on issues affecting their businesses.
Business deals are often built around company assets pledged as collateral to secure a loan or other obligation. In these transactions, the secured party must be confident that the individual pledging the company’s assets actually has legal authority to do so. When that authority is missing or unclear, both sides risk finding out too late that the pledge cannot be enforced, turning a seemingly safe deal into an expensive dispute.
If your Wisconsin limited liability company (LLC) plans to conduct business outside the state, it is important to understand that each jurisdiction has its own rules governing when and how a business must register if it will operate in that jurisdiction (often called “transacting business”). These considerations apply to other types of entities as well, such as corporations and partnerships; however, this article focuses specifically on the requirements for LLCs.
Wisconsin's LLC statutes were restated effective January 1, 2023. The restatement may not materially affect existing robust operating agreements, but it did introduce some new terms. If you are looking to amend or restate your LLC's current operating agreement or are drafting a new one, there are some changes to consider.