Legal Bueno

    How to Start Your LLC in Rhode Island

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $150
    • Turnaround time: 3-4 business days

    How do I start an LLC in Rhode Island?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Rhode Island, visit https://business.sos.ri.gov/CorpWeb/CorpSearch/CorpSearch.aspx.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Rhode Island?

    Here's the rundown for Rhode Island:

    • The filing fee is: $150
    • There are ongoing fees of $50 (every year)
    • It usually takes 3-4 business days if you're filing online or 3-4 business days (plus mail time) if by mail.

    Why Rhode Island is a great state for your LLC

    Starting a company in Rhode Island presents numerous benefits that can enhance the entrepreneurial experience and success. Here are some key advantages:

    • Financial Incentives: Rhode Island offers a range of incentives, credits, and grants for businesses, such as the Qualified Jobs Incentive Tax Credit. This allows qualifying businesses to receive annual, redeemable tax credits for up to 10 years, significantly reducing tax liabilities.
    • Streamlined Business Structure: Forming a Limited Liability Company (LLC) in Rhode Island is a straightforward process. This business structure is particularly well-suited for startups and mid-sized enterprises, providing them with essential protections and benefits similar to larger corporations.
    • Ease of Management: An LLC in Rhode Island enables business owners to create, manage, and stay compliant with regulations more easily. This simplicity allows entrepreneurs to focus on growth rather than administrative hurdles.
    • Tax Advantages: The ability to efficiently file taxes and explore potential tax treatment advantages is a significant perk for Rhode Island businesses. This can lead to better financial management and savings.
    • Personal Asset Protection: By forming an LLC, entrepreneurs can protect their personal assets from business liabilities and debts, offering peace of mind as they grow their ventures.
    • Low Filing Costs: The cost to register an LLC in Rhode Island is relatively low at $150, making it an affordable option for new business owners looking to establish their presence without high upfront expenses.

    In summary, Rhode Island provides a favorable environment for starting a business, marked by financial incentives, a favorable business structure, ease of management, tax benefits, personal asset protection, and low entry costs.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Rhode Island:

    Articles of Organization

    The articles of organization must include: 1. The name of the LLC;

    1. The name and address of its resident agent in Rhode Island;
    2. A statement whether, under the articles of organization and any written operating agreement, the LLC is intended to be:

    a. Treated as a partnership,

    b. Treated as a corporation, or

    c. Disregarded as an entity separate from its member for purposes of federal income taxation;

    1. The address of the principal office of the LLC if it is determined at the time of organization;
    2. Any other provision, not inconsistent with law, that the members elect to include;
    3. A statement whether the LLC is to be managed by its members or by one or more managers, and if the LLC has managers at the time of its formation, the name and address of each manager; and
    4. The name and address of the person authorized to sign and who does sign the articles of organization.

    R.I. Gen. Laws § 7-16-6

    Filing fee: $150

    R.I. Gen. Laws § 7-16-65

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Rhode Island laws require for filing:

    When the secretary of state accepts the articles of organization or a certificate of registration or any other document filed, the secretary of state must:1. Endorse on the document the date and time of its acceptance for filing;

    1. Promptly file the document; and
    2. Issue a certificate or other evidence that establishes that the document was accepted for filing by the secretary of state and the date and time of the acceptance for filing.

    R.I. Gen. Laws § 7-16-8

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Rhode Island:

    Annual report of domestic and foreign LLCs

    R.I. Gen. Laws § 7-16-66