Senate Bill sb2148c1

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    Florida Senate - 2007                           CS for SB 2148

    By the Committee on Commerce; and Senator Deutch





    577-2208-07

  1                      A bill to be entitled

  2         An act relating to limited liability companies;

  3         amending s. 608.406, F.S.; eliminating

  4         authorization to use the words "limited

  5         company," the abbreviation "L.C.," or the

  6         designation "L.C." as a company name; requiring

  7         a limited liability company name to be

  8         distinguishable on databases maintained by the

  9         Division of Corporations of the Department of

10         State; providing an exception; deleting a

11         name-recording requirement for the department;

12         amending s. 608.407, F.S.; requiring the name

13         of a limited liability company in the company's

14         articles of organization to satisfy certain

15         requirements; providing an effective date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Section 608.406, Florida Statutes, is

20  amended to read:

21         608.406  Limited liability company name.--

22         (1)  A limited liability company name:

23         (a)  Must contain the words "limited liability

24  company," or "limited company," or the abbreviation

25  abbreviations "L.L.C.," or "L.C.," or the designation

26  designations "LLC" or "LC" as the last words of its the name;

27  this applies to of every limited liability company formed

28  under the provisions of this chapter. The word "limited" may

29  be abbreviated as "Ltd.," and the word "company" may be

30  abbreviated as "Co." Omission of the words "limited liability

31  company," or "limited company," the abbreviation abbreviations

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    Florida Senate - 2007                           CS for SB 2148
    577-2208-07




 1  "L.L.C.," or "L.C.," or the designation designations "LLC" or

 2  "LC" in the use of the name of the limited liability company

 3  renders shall render any person who knowingly participates in

 4  the omission, or knowingly acquiesces in the omission, liable

 5  for any indebtedness, damage, or liability caused by the

 6  omission.

 7         (b)  May not contain language stating or implying that

 8  the limited liability company is organized for a purpose other

 9  than that permitted in this chapter and its articles of

10  organization.

11         (c)  May not contain language stating or implying that

12  the limited liability company is connected with a state or

13  federal government agency or a corporation or other entity

14  chartered under the laws of the United States.

15         (2)  The name of the limited liability company must be

16  distinguishable on the databases of the Division of

17  Corporations of the Department of State, except for fictitious

18  name registrations filed pursuant to s. 865.09 and general

19  partnership registrations filed pursuant to s. 620.8105.

20  Except as stated in this subsection, a limited liability

21  company may register under a name that is not otherwise

22  distinguishable on the records of the Division of Corporations

23  with written consent of the owner entity if the consent is

24  filed with the Division of Corporations at the time of

25  registration of such name.

26         (3)(2)  The name of the limited liability company shall

27  be filed with the Department of State for public notice only

28  and shall not alone create any presumption of ownership beyond

29  that which is created under the common law. The Department of

30  State shall record the name without regard to any other name

31  recorded.

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    Florida Senate - 2007                           CS for SB 2148
    577-2208-07




 1         (4)  In the case of any limited liability company in

 2  existence prior to July 1, 2007, and registered with the

 3  Division of Corporations, the requirement in this section that

 4  the name of the entity be distinguishable from the names of

 5  other entities and filings does not apply except if the

 6  limited liability company files documents on or after July 1,

 7  2007, which would otherwise have affected its name.

 8         Section 2.  Paragraph (a) of subsection (1) of section

 9  608.407, Florida Statutes, is amended to read:

10         608.407  Articles of organization.--

11         (1)  In order to form a limited liability company,

12  articles of organization of a limited liability company shall

13  be filed with the Department of State by one or more members

14  or authorized representatives of the limited liability

15  company. The articles of organization shall set forth:

16         (a)  The name of the limited liability company, which

17  must satisfy the requirements of s. 608.406.

18         Section 3.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007                           CS for SB 2148
    577-2208-07




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2148

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 4  The bill as filed required limited liability companies
    registered with the Department of State (DOS) to be
 5  distinguishable on the databases maintained by the Division of
    Corporations within DOS. The CS includes this requirement and:
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    -    Removes the option for a "limited company" (an obsolete
 7       designation) to be registered with the state;

 8  -    Exempts general partnership names registered under s.
         620.8105, F.S., from the requirement that the name be
 9       distinguishable from DOS databases;

10  -    Provides that a non-distinguishable name may be
         registered with the written consent of the owner entity
11       and if this consent is filed with the application for
         registration; and
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    -    Applies distinguishable name requirements of the bill
13       prospectively.

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