Friday, June 12, 2015

New PA Transactions Act


Contributed by Josh Cohen, Hartman Underhill & Brubaker, LLC

Beginning July 1, 2015, Pennsylvania's business laws will be on the leading edge of statutory flexibility for business transactions.  For existing or new PA-based businesses with international operations, this presents a significant opportunity to adjust their legal structure to take advantage of tax rules, governance structures, ownership requirements, wealth planning or market-risk protection. 

The new Act not only modernizes Pennsylvania law governing all types of business entities (e.g., corporations, LLCs and limited partnerships), but it also creates new statutory flexibility to engage in transactions involving mergers, conversions (from one type of entity into another), divisions (splitting one entity into multiple other entities, of the same or different types), ownership interests exchanges, and domestication (moving the home jurisdiction to/from Pennsylvania).  The new law creates opportunities for a Pennsylvania business with international operations to more efficiently and effectively organize or re-organize its legal structure to implement its business plans.  Consult with experienced legal and financial advisors to see if the new law is advantageous for you.



Joshua D. Cohen, Esquire
Hartman Underhill & Brubaker, LLC
221 E Chestnut St  
Lancaster, PA 17602  
717-299-7254


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