STEP ONE: CHOOSE A NAME FOR YOUR LLC
Your LLC must have a distinctive name that is not already being used by another business in Rhode Island. The name must include the phrase “Limited Liability Company,” “L.L.C.,” or “LLC.” It’s also a good idea to choose a name that is easy to remember and spell.
You can check to see if your desired name is available by searching the business entity database on the Rhode Island Secretary of State website.
If the name you want is already taken, you can reserve it for 120 days by filing a Name Reservation form with the Secretary of State’s office.
The reservation will give you time to decide on an alternate name for your LLC or to take steps to acquire the rights to use the name you originally wanted.
STEP TWO: APPOINT A REGISTERED AGENT
Every LLC must have a registered agent—an individual or business entity that agrees to accept legal documents on behalf of the LLC. The registered agent must have a physical address in Rhode Island and be available during normal business hours.
You can appoint yourself as a registered agent, but many business owners prefer to appoint someone else so they don’t have to deal with the administrative tasks associated with being an agent.
STEP THREE: FILE ARTICLES OF ORGANIZATION
The next step is to file Articles of Organization with the Secretary of State’s office.
The Articles of Organization must include the following information:
- The name and address of the LLC
- The name and address of the registered agent
- The effective date of the LLC’s formation
- Whether the LLC will be managed by members or managers
- The names and addresses of the members or managers
- The signature of an authorized person
You can find the Articles of Organization form on the Secretary of State website.
Once you have completed the form, you can submit it online, by mail, or in person at the Secretary of State’s office.
There is a filing fee of $150, which must be paid by check or money order made out to the “General Treasurer.”
STEP FOUR: CREATE AN OPERATING AGREEMENT
An operating agreement is not required in Rhode Island, but it is highly recommended.
The operating agreement outlines the ownership structure and rules for governing your LLC. Among other things, it should include information about how decisions will be made, how profits and losses will be distributed, and what happens if a member leaves the LLC.
Having an operating agreement in place can help prevent disagreements down the road and make it easier to resolve any disputes that do arise.
STEP FIVE: OBTAIN BUSINESS LICENSE, PERMITS & REGISTRATION
Depending on what type of business you are running, you may need to obtain certain licenses and permits from state and federal agencies.
For example, if you are selling food products, you will need to obtain a license from the Rhode Island Department of Health.
All businesses that operate in Rhode Island must register with the Department of Revenue for tax purposes within 30 days of starting business operations.
You can register online or by mail/fax using Form RI-1003B (Business Corporation Tax Registration). The registration fee is $39 for most businesses but may vary depending on your business type and tax structure.
STEP SIX: GET AN EIN
Obtain an Employer Identification Number (EIN) from the IRS. This number is used to identify your LLC for tax purposes and can be obtained online, by fax, or by mail.
STEP SEVEN: OPEN A BUSINESS BANK ACCOUNT
CONGRATULATIONS FOR SUCCESSFULLY SETTING UP YOUR LLC IN RHODE ISLAND!
Visit our Resources page for more reliable information about setting up an LLC in Rhode Island!