Gov. McCallum signs Next Economy Bill

Quite bill streamlines incorporation, capitalization
A bill designed to make it easier for limited liability corporations (LLCs) and domestic corporations to convert from one form to another, merge and restructure has been signed into law.
The “Next Economy Bill,” which will also ease securities laws to promote capital formation, got Gov. Scott McCallum’s signature during the Governor’s Summit on Capital at the Midwest Express Center.
The easing of restrictions on LLCs is a key component of the legislation, according to Allen Oelschlaeger, an InvestWisconsin advisory board member and founder of Telaric, a Mequon-based business advisory firm serving entrepreneurs.
“Over the last five years this whole LLC corporate structure has been broadly adopted,” Oelschlaeger said. “It came out the day before that 60% of new corporations are LLCs – 21,000 new companies were formed last year and of those, 12,000 were LLCs.”
According to venture capitalist Jeff Rusinow of Silicone Pastures, the new law, which makes it easier to sell stakes in start-up companies to more people, will help entrepreneurs get the seed money they need to ramp up to the next level.
“These new legislative changes will further encourage entrepreneurs to take the leap and start a new business,” Rusinow said. “In addition, the availability of ‘seed’ and early-stage venture capital is critical for a serious entrepreneurial community to take root in Wisconsin, and this new legislation makes funding start-ups easier.”
The law is Senate Bill 333.
March 29, 2002 Small Business Times, Milwaukee