The Rhode Island Secretary of State’s office requires that any business entity file its articles of organization with the state prior to conducting business. If you plan to start a business in Rhode Island, then you need to register your company with the Rhode Island Secretary of State before opening for business. You may want to consider registering your company as a Limited Liability Company (LLC) if you anticipate having employees or contractors who will work for your business. An LLC is not subject to federal income tax. However, you will still have to pay franchise taxes to the state of Rhode Island.
Articles of Organization
An LLC is formed under Chapter 180-1310 of the General Laws of Rhode Island. To create an LLC, you must complete and submit the Articles of Organization to the Rhode Island Secretary of States Office. These documents should be filed at least 30 days before the first day of operations. In addition to filing the Articles of Organization, you must provide copies of these documents to each member of the LLC. Each member receives a copy of the Articles of Organization upon joining the LLC.
Operating Agreement
After forming the LLC, you must draft an operating agreement. A good place to begin drafting an operating agreement is the Rhode Island Small Business Development Center website. There are many sample operating agreements available online. You may choose to use one of the sample operating agreements provided by the SBA.
Tax Identification Number
You must obtain a Tax ID number to conduct business in Rhode Island. The Rhode Island Department of Revenue provides information about how to apply for a Tax ID number. Once you receive your Tax ID number, you can open a bank account and deposit money into the account.
The Secretary of State’s Office (SOS) is responsible for administering the laws governing business entities in Rhode Island. Sole proprietorships are businesses owned by individuals who have no employees. A sole proprietor may conduct any type of business activity permitted under Rhode Island law. However, they cannot engage in certain types of activities, including selling goods or services, engaging in real estate transactions, or owning a bank account.
A sole proprietorship is not considered a corporation, partnership, or LLC. Instead, it is treated as a separate legal entity. As such, a sole proprietorship does not need to file annual reports or pay taxes. In addition, it does not need to follow corporate formalities, such as holding regular board meetings or keeping minutes.
Rhode Island statutes require that a person forming a sole proprietorship provide notice to the SOS before doing so. If the individual fails to do so, then the SOS automatically assumes that he or she formed the company without proper authority.
To avoid problems later, it is best to consult with a lawyer about whether to incorporate or operate as a sole proprietorship.
What services does the secretary of state offers for Rhode Island businesses
The Secretary of State’s Office provides many services to individuals who own businesses. These services include filing business licenses, registering trademarks, and maintaining records of corporations and partnerships. In addition, the office offers assistance to those seeking to incorporate their business.
The documents you will need to complete the process of filing an LLC in Rhode Island Secretary of State.
1. Articles of Organization (AO)
This document is the first step in forming an LLC. You will need to file this document at the office of the Secretary of State in Providence, RI. There is no fee associated with this document.
2. Operating Agreement
You will need to draft an operating agreement before you begin operations. This document should outline how the company will operate and what responsibilities each member will have.
3. Certificate of Good Standing (CGS)
Once you have filed articles of organization, you will need to obtain a certificate of good standing. This document shows that the business was properly formed and registered with the state.
4. Business License
If you plan on selling products, you will need to apply for a seller’s permit. If you do not sell any products, then you do not need a license.
5. Tax ID Number
In order to pay taxes, you will need to get a tax identification number. To receive a tax id number, you will need to submit a completed application along with $25.00. Once approved, you will receive a temporary id number that you will use until you receive your permanent id number.
It is recommended that you purchase liability insurance. In addition to this, if you plan on having employees, you will need workers’ compensation insurance.
7. Bank Account Opening Letter
To open a bank account, you will need to send a letter requesting permission to open a checking account. You will need to provide them with information about the business, including its name, address, phone number, and email address.
Frequently Asked Questions
How much is an LLC in Rhode Island
$12 per month for sole proprietorships and partnerships (as well as the first year’s annual dues)
$15 per month for corporations (plus the second year’s annual dues).
$25 per month for nonresident domestic entities (including foreign companies incorporated outside RI).
$35 per month for nonresident international entities (also includes foreign companies incorporated out of state).
How long does it take to get an LLC in Rhode Island?
Once you’ve filed the paperwork, it takes about 30 days before the company becomes active.
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.
