An LLC is a type of limited liability company. This structure offers owners protection from lawsuits filed against the company itself. You can start an LLC in Rhode Island either through a partnership or a corporation. You must file Articles of Organization with the Secretary of State’s office to do it through a partnership. If you want to go corporate, you must file articles of incorporation with the state. Once you have done this, you can register your name with the Secretary of State.
To form an LLC, you must pay $100 filing fee plus $10 per person ($25 per entity). You can choose whether to incorporate or form a partnership. Incorporating allows you to protect yourself from personal liability while forming a partnership does not.
If you decide to incorporate it, you must provide the following information:
• Name of the LLC
• Address where the LLC will operate out of
• Names and addresses of each member
• Whether the members are individuals or corporations
Table of Contents
You’re prepared to form an LLC in Rhode Island.
The state of Rhode Island doesn’t require any specific paperwork or licensing to operate a business. However, you must register your company before beginning operations. This includes creating a name for your business, obtaining a business license, and paying the required fees. If you don’t do it correctly, your business could face legal consequences.
In addition to the registration process, there are several things you must consider before opening up shop. For example, you must file articles of organization within 10 days of forming your company. These documents include information about your company’s purpose, ownership structure, and corporate officers.
You must also obtain a Business License from the state of Rhode Island. Depending on the type of business you plan to start, you may be able to apply online. Some businesses, such as sole proprietorships, may qualify for a temporary permit. Once you receive approval, you must renew your license every year. Failure to pay the renewal fee could lead to fines.
Finally, you must register your business with the Secretary of State’s Office. To complete this step, you must provide proof of identification, including a Social Security number, and submit a copy of your Articles of Organization.
If you are interested in starting a business in Rhode Island, we recommend consulting with a local attorney. They can help guide you through the entire process.
1. Name Your LLC
The state of Washington requires you to register your limited liability companies (LLCs). This includes choosing a name and filing fees. You must file within 30 days of forming your LLC. If you fail to do so, you could face fines up to $25,000 per day.
You don’t want to use a name that might cause confusion because it sounds like another business. For example, if you are starting a dog grooming business, avoid using the term “dog groomer.” Instead, choose something like “Doggy Daycare & Grooming Services.”
If you plan to sell products online, consider registering your LLC under Amazon Fulfillment Program. This allows you to ship directly to customers while avoiding sales tax.
Also, make sure that your LLC name does not conflict with any existing businesses. Don’t call yourself “Laser Hair Removal Service” or “Laser Eye Surgery Center.”
2. File Your Articles of Organization
Your articles of organization are filed with the Secretary of State’s office. They include information about the purpose of your LLC, such as whether you are doing business as a sole proprietorship, partnership, corporation, etc., and what type of entity you are.
Article of organizations are often referred to as “Articles of Incorporation.” However, there are many variations of how states refer to them. For instance, some states refer to them as “Certificate of Formation,” whereas others call them “Certificates of Incorporation.”
Is it possible to reserve a company name in Rhode Island?
If you want to start up a small business in Rhode Island, you’ll need to take care of some legal matters before you begin operations. One of those things is reserving your business name. If you don’t do it now, you could run into trouble later. Here are three reasons why you should consider reserving your business name today.
What distinguishes the name of my LLC from a bogus company name?
Your LLC name should be the exact same as your business name, because it makes life easier for customers and potential investors. If you choose a fictitious business name, however, you are required to register it with the state where you do business. You must file a fictitious business form with the Secretary of State in each state where you conduct business.
If you plan to use a fictitious business name, make sure you know how much it costs to register one. Some states charge $50; others require filing fees ranging from $100-$500. In addition, some states require additional documentation such as proof of incorporation or a federal tax ID number.
2. Designate a Registered Agent
Registering an LLC in Rhode island is free and easy. You don’t even have to file a form with the state. However, there are many benefits to registering an LLC through a registered agent. Your attorney will recommend who you should designate as your registered agent. If you’re looking for a simple way to protect yourself from lawsuits, consider hiring a registered agent. A registered agent is someone who represents you in court documents and acts on behalf of your company. For example, if you sell products online, it makes sense to register a company in Rhode Island because you want to make sure that customers receive refunds quickly. If you fail to do so, you could lose money.
What is the role of a registered agent?
A registered agent is responsible for receiving service of process on your business’ behalf. This includes accepting legal documents like summonses and court papers. In addition, it requires maintaining a physical office and accepting legal and state mail. Your registered agent should keep normal business hours.
In Rhode Island, is it possible to act as your own registered agent?
In Rhode Island, there are three ways to become a registered agent. One is to pay $10 per year to use the state’s online system. Another option is to hire someone else to do it for you. And finally, you can register yourself as an “agent.” But what does that mean? Is it worth it? Let’s find out.
After forming an LLC, can my registered agent be changed?
If you want to form an LLC in Texas, you must select a registered agent. This person will take care of certain legal matters on your behalf. You can choose someone who lives nearby, like your accountant, lawyer, or even your spouse. However, there are some things you should know about changing your registered agent.
You can change your registered agent up to three times within 12 months. If you fail to do so, it could cause problems down the road. For example, if you don’t notify your original registered agent of a lawsuit filed against your business, you might lose your ability to defend yourself.
Changing your registered agent requires filing Form TXU-1 with the Secretary of State.
3. Submit LLC Articles of Organization
You must file articles of organization with Rhode Island’s Secretary of State’ s office if you want to form an LLC there. It’s easy to do so online, by mail, and in person.
You can submit them online, via email, fax, or mail. If you choose to do it online, you’ll receive confirmation that your documents are being processed. Once your articles of organization are submitted, you’ll be notified by email when they are approved.
The filing fee is $60 per set of articles of organization and includes one set of four forms. Each set consists of one copy of the Articles of Organization; one copy of the Certificate of Incorporation; one copy of the Bylaws of the Company; and one copy of the Notice of Meeting of Members.
If you decide to file your articles of organization by mail, you’ll pay $35 per set of articles of incorporation plus $5 for each additional set of articles of organization. In addition, you’ll have to send proof of payment along with your documents.
In person, you’ll find the Secretary of State‘s Office in the State House Annex Building, located at 12 Benefit Street in Providence. Hours vary depending on the day and week, but the office is open Monday through Friday from 8am to 5pm.
Filing your articles of organization in person costs $30 per set of articles of corporation plus $5 for each extra set of articles of organization, and you’ll need photo ID.
Your articles of organization must contain the following information:
How can I prevent my private information from being made public?
If you want to protect yourself against data breaches like Equifax, you must register an agent. This is true even if you are a small nonprofit or church group. If you do not, anyone can access your Articles of Organization online. You could find out that your organization is being investigated by the IRS or the FBI. Or worse, someone could steal your identity and open credit cards in your name.
A professional registered agent will help ensure that your organization’s documents remain private. They will take care of filing taxes, paying bills, and keeping track of changes in ownership.
Data brokers collect sensitive information about people. These companies sell it to marketers and others. Some use it to spy on us. Others sell our data to government agencies.
The best way to avoid having your personal information shared is to make sure that no one knows your address. Only give your home phone number to trusted friends and family members. Don’t provide your email address unless you know exactly what you are doing. And never post your Social Security Number on social media sites.
What’s the difference between a member-managed and manager-managed LLC?
A member-managed LLC is one where each individual owner owns his/her own percentage of the company. A manager-managed LLC is one in which there is just one managing partner who holds ownership over the whole company. Each structure has advantages and disadvantages.
How do I file the Rhode Island Articles of Organization?
There are two ways to file an articles of organization in Rhode Island: Online or by mail/inperson. If you want to expand your current limited liability corporation into the state of Rhode island, you will need to create another entity called a Foreign Limited Liability Company.
4. Construct an LLC Operating Agreement.
An LLC operating agreement outlines the basics of your company. This document includes information about who owns what and how decisions are made. If you’re thinking about starting a business, it’s worth taking some time to write out an operating agreement. Here’s how to do it.
Does Rhode Island require an LLC to have an operating agreement?
An operating agreement is an essential document for all types of companies, including limited liability companies (LLCs). In Rhode Island, there is no statute requiring an LLC to have one. However, without it, you run the risk of being exposed to additional liabilities under state law.
What should be included in an operating agreement?
An operating agreement is similar to a partnership agreement. You’ll want to consider what you’re getting into when it comes to creating one. If you don’t know where to start, here are some questions to ask yourself:
1. What do I want out of this deal?
2. Who am I partnering with?
3. How much money am I putting up?
4. Will we split profits equally or 50/50?
5. Do we each keep our personal assets separate?
6. Is there a buyout clause?
Does a single-member LLC need an operating agreement?
If you are considering opening a small business bank account, it might help to know there are some important differences between checking accounts and business accounts. One such difference is that banks typically require an operating agreement for businesses. This article explains what an operating agreement is and why you might want one.
5. Get an EIN in Rhode Island
An employer identification number (EIN), also known as an IRS tax ID number, is required if you want deductions for business expenses. You can obtain one online for free. If you are self-employed, you can use Form 1040 Schedule SE, Self-Employment Tax Return, to report income and expenses.
Do I need an EIN for my Rhode Island LLC?
In order to legally operate a small business in Rhode Island, you must obtain an Employer Identification Number (EIN). This number allows you to file taxes, open a business bank account, receive unemployment benefits, pay payroll taxes and much more. If you are thinking about starting a business in Rhode Island, it’s important to understand what an EIN is and how it works.
An EIN is required to start a business in every state except Wyoming. However, even though most states require an EIN, some banks still ask for one before opening a business account. A business bank account is where your money goes while operating your business. Without a valid EIN, you cannot open a business bank account. You could lose access to your business funds and incur fees.
The IRS requires businesses to report information such as the name of the owner, address, phone numbers, email addresses, date of incorporation, type of business, gross receipts and expenses. They use this data to determine whether you owe taxes. For example, if you run a home daycare center out of your house, you might owe sales tax on the children’s toys and food that you sell.
If you do not provide the correct information to the IRS, you face fines, penalties and even jail time. Identity thieves sometimes use stolen EINs to open fraudulent accounts. Because the IRS does not verify identities, anyone can apply for an EIN online.
You can find the application process for obtaining an EIN on the IRS website. Once you complete the form, you will receive an EIN within 30 days. You can also call the IRS at 800-829-4933 to request an EIN over the phone.
6. Open a Bank Account
An LLC cannot be held liable or responsible for its members’ actions. This rule applies even if the member commits fraud or embezzles money. However, it does not apply to partners in a partnership. Partners are jointly and severally liable for each other’s debts. If you open a business bank account, make sure the bank knows about your LLC. You don’t want to find out later that the bank won’t honor checks written against the account because you didn’t inform them of your LLC.
You can open a business checking account with no credit card required. You can also set up automatic monthly payments to pay bills like rent and utilities. Business accounts offer many benefits over personal accounts, including lower fees and better security features.
If you use a business bank account, you’ll need to fill out an IRS form called 8832. Fill out the form and submit it to the IRS within 30 days of establishing the account.
7. Fund the LLC
When you form a limited liability corporation (LLC), you need to contribute some money to it. If you don’t, you won’t be able to do anything with the LLC. But what exactly does “contribute” mean?
In most cases, you’ll need to make a payment equal to one hundred percent of the value of the LLC. So, if you’re forming a general partnership, you’d need to contribute $1,000. And if you’re setting up a sole proprietorship, you’d need to give $500.
If you’re creating a corporation, however, there’s no limit on how much you need to contribute. Some states require corporations to file annual reports; others don’t. Regardless, you’ll need to contribute enough money to cover those costs.
The good news is that once you’ve done that, you can start making payments toward the LLC’s expenses. These include things like legal fees, accounting fees, and taxes. Once again, though, you’ll need to pay for everything upfront.
So, how much should you contribute? Well, it depends on how much work you plan to do with the LLC. For instance, if you think you might use the entity for real estate development, you’ll probably need to contribute more. On the other hand, if you just want to run a small business out of your home, you could save yourself some cash by paying less.
But even if you choose to contribute less, you still need to consider the tax implications. If you contribute to the LLC, you’ll owe income tax on the total amount. However, withdrawing from the LLC will only owe capital gains tax on the difference.
What is LLC membership interest?
An LLC is a limited liability company, meaning it does not have unlimited liabilities like a corporation. As such, members do not personally risk losing their entire investments. Instead, each member owns a percentage of the company. This percentage depends on how much he or she contributed to the organization. For example, if you put $10,000 into a company, you might receive 10% ownership. If you contribute $100,000, you could end up owning 20%.
Membership interests are usually based on your initial investment or contribution. However, some companies allow members to buy out other owners. In that case, the price paid for the shares determines the amount of ownership.
A partnership needs to set aside funds to pay taxes on its earnings. These profits must be distributed among partners according to the percentages they hold. Each partner pays tax on his or her portion of the profit.
An LLC is taxed differently than corporations. Corporations file taxes quarterly. They report their earnings and pay taxes on those earnings during the quarter. An LLC files taxes annually. It reports its earnings and pays taxes on those earnings once a year.
8. File State Reports & Taxes
The IRS offers several ways to file your state tax returns. You can do it yourself at irs.gov/businesses/small-businesses/filing-state-returns. If you don’t want to do it yourself, we can help. Our team of experts are ready to assist you. We’re here to make sure you get what you owe. Schedule an appointment today at www.taxassistanceusa.com.
When is the annual report for Rhode Island due?
The state of Rhode Island requires certain companies to submit an annual report to the Secretary of State’s Office. This includes businesses incorporated in Rhode Island, foreign corporations doing business in Rhode Island, and domestic corporations having a place of business in Rhode Island. Companies must file either on paper or online. Paper filings are free; electronic filings cost $50 per corporation.
If you fail to file, your company could face administrative dissolution. Administrative dissolution occurs when the Secretary of State finds that the corporation is inactive or abandoned. A corporation becomes inactive when it fails to pay franchise taxes within three months of the end of each fiscal year. An inactive corporation loses its corporate status and ceases to exist.
Abandoned corporations lose their corporate status and cease to exist when there is no activity whatsoever for six consecutive years.
How are Rhode Island LLCs taxed?
LLCs are taxed like partnerships. In fact, they pay taxes on all income generated, including distributions made to owner partners. This includes profits distributed to shareholders, dividends paid out, interest received, rents collected, and even capital gains realized.
There are three different ways to categorize entities as corporations: S Corporations, C Corporations, and Limited Liability Companies. Each type of corporation has its own set of rules regarding what it must do to qualify. For example, C Corporations must file annual reports with the IRS and pay federal taxes. Limited Liability Companies are treated differently because they aren’t required to file financial statements with the government. Instead, they’re governed by state laws.
Frequently Asked Questions
Can I file using a different filing status than my federal return?
Rhode Island residents must use the same filing status on state and federal tax returns. This includes single filers, married individuals filing jointly, and married individuals filing separately. However, there is an exception for married couples where one spouse is a Rhode Island resident while the other resides outside of Rhode Island. In this case, the spouses may file separate Rhode Island state returns.
How long does it take to get an LLC in Rhode Island?
It takes about 2-3 weeks to set up a business entity in RI. You need to file an application with the Secretary of State’s office and pay $100 filing fee. After that, you’ll have to wait until they send you a letter stating whether or not they approved your request. If they approve, then you’re good to go!
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.