16-20-1103. Ceasing to be a low-profit limited liability company.
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Effective 10/1/2026
16-20-1103. Ceasing to be a low-profit limited liability company.
(1)If a limited liability company that is a low-profit limited liability company at its formation at any time ceases to meet a requirement to be a low-profit limited liability company under Section 16-20-1102 , the limited liability company:
(a)ceases to be a low-profit limited liability company on the day on which the limited liability company no longer meets the requirement; and
(b)if it continues to meet the requirements of this chapter to be a limited liability company, continues to exist as a limited liability company that is not a low-profit limited liability company.
(2)A low-profit limited liability company's failure to meet a requirement of Section 16-20-1102 may be:
(a)voluntary, in order to convert to a limited liability company that is not a low-profit limited liability company; or
(b)involuntary.
(3)If a low-profit limited liability company ceases to be a low-profit limited liability company in accordance with this section, the limited liability company shall:
(a)change the limited liability company's name to conform with Section 16-1a-302 ; and
(b)amend the limited liability company's certificate of organization in accordance with Section 16-20-202 .
Renumbered and Amended by Chapter 92 , 2026 General Session