The New Hampshire Legislature has introduced House Bill 98, a significant proposal aimed at enhancing the operational flexibility of single-member professional limited liability companies (PLLCs). Introduced on January 24, 2025, by Representative Turer, the bill seeks to address a critical gap in current law regarding the management of PLLCs in the event of a manager's death, incapacity, or disqualification.

Under existing regulations, all managers of PLLCs must be qualified individuals, which can pose challenges for single-member companies when the sole manager is unable to fulfill their duties. House Bill 98 proposes to allow these companies to designate an assistant manager who does not need to meet the same qualifications. This change would enable the assistant manager to step in and manage the company for up to one year under specific circumstances, ensuring continuity of operations during transitional periods.

The bill has sparked discussions among lawmakers and stakeholders, particularly regarding its implications for professional practices such as law firms, medical practices, and other specialized services that operate as PLLCs. Proponents argue that this flexibility is essential for maintaining business continuity and protecting the interests of clients during unforeseen events. Critics, however, express concerns about the potential for unqualified individuals to manage sensitive professional practices, emphasizing the need for stringent oversight to maintain professional standards.

The economic implications of House Bill 98 could be substantial, particularly for small businesses that rely on PLLC structures. By allowing for a smoother transition of management, the bill could help prevent disruptions that might otherwise lead to financial losses or diminished client trust. Additionally, the bill aligns with broader efforts to support small businesses in New Hampshire, fostering a more resilient economic environment.

As the bill moves through the legislative process, its future will depend on ongoing discussions and potential amendments aimed at balancing flexibility with the need for professional integrity. If passed, House Bill 98 could significantly impact how single-member PLLCs operate, providing a safety net for business owners and their clients alike.