The New Jersey Revised Uniform Limited Liability Company Act (RULLCA) became effective, and the New Jersey Limited Liability Company Act was repealed, on March 1. RULLCA makes some significant changes in New Jersey LLC law, which will require practitioners to revise their form of operating agreement. Among the changes are the following.
• Distributions. Each member of an LLC is entitled to an equal share of the profits or losses. This is the default rule provided in the statute, which can be modified in the LLC’s operating agreement. Under the old law, each member shared the profits or losses based on the agreed value of their capital contributions to the LLC.
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