A Limited Liability Company is a legal entity that limits the liability of its owners. To open a Limited Liability Company in Rhode Island, you'll have to file an Articles of Organization with your Rhode Island Secretary of State. You can file online, by fax, mail, or in person. The Articles of Organization forms is the only legal document that actually creates your new rhode island llc. If you don't have one, it doesn't exist.

 

Once you have the Articles of Organization form signed, you are considered a 'covered entity.' That means that any activity that would damage your status as a 'fully paid' and existent company would be deemed by the state to do so. The same goes for any actions that would discharge your liability as a business. This includes liability for professional negligence, misrepresentation of material facts, and so on. If you become aware that something is wrong, you must report it to your state's Secretary of State before the Articles of Organization can be processed further.

 

A sole proprietorship is considered a separate entity from the people who own it. The state will require a majority vote of a majority of the owners of the LLC to override any provision in the Limited Liability Company's Articles of Organization which makes the LLC a sole proprietorship. But if the state requires a majority, the proceedings must be through a simple majority of all LLC owners rather than a simple majority of all shareholders in the business. This ensures that the limited liability company continues to be a separate entity even while it is formally operating as a business. The effect of a sole proprietorship is that it is not legally considered a business even though it has been set up as such by the state.

Tips For Forming an LLC in Rhode Island

 

A simple solution is for a Rhode Island business owner to use a Limited Liability Company instead of a sole proprietorship. The main advantage to this is that the LLC is considered a separate entity from the owner or owners. This protects the small business owner from being held personally liable for decisions or actions of the LLC. The small business owner is able to control his LLC as if he or she owns it.

 

The process to set up an LLC in Rhode Island is much simpler than in other states. In order to start, a registered agent must file an Article of Organization form with the treasurer of the county in which the LLC is to be registered. He or she must also file a notice of administrative action with the state's secretary of state. The registered agent must also submit to the court a duly completed application for a business permit. Then he or she must pay the filing fees.

 

Once all these documents are submitted to the court, the process of registration can begin. If an individual has already formed an LLC in another state, it must include its owner's name in its Articles of Organization. However, it must also include its address and its federal tax identification number. This information must be included on the application for a license to transact business in Rhode Island. Likewise, all annual reports filed by LLCs must include the address of the registered agent and his or her federal tax ID number.

 

All payments to the registered agent must be made directly to the LLC. LLCs can only be organized in Rhode Island after they have been approved by the Secretary of State. Once the LLC file its articles of organization, it will be required to select a registered agent. The name of the registered agent should match the name of the LLC. The state's law requires that each LLC have a primary agent who can manage its business affairs on behalf of the LLC. The process of selecting a qualified candidate for this position is typically done through the state's Department of Revenue.

 

Another important document to be completed is the Operating Agreement. The Operating Agreement binds the members of the LLC against each other and authorizes the employer identification number and the business location of the LLC. It is a good idea to have an expert attorney review the Operating Agreement because of the sensitive information contained in it. A review could reveal whether the LLC was formed properly and, if not, could help establish whether it is legally viable to operate in the state of Rhode Island. As with all other states, the Operating Agreement cannot be contested after it is filed with the court.

Thank you for reading, for more updates and articles about rhode island llc don't miss our homepage - Des Etude3Generations We try to write our site bi-weekly