Start an LLC in Rhode Island in 5 Simple Steps
Step 1: Give Your Rhode Island LLC a Name
Step 2: Select a Rhode Island Resident Agent
Step 3: File the Articles of Organization in Rhode Island.
Step 4: Create an Operating Agreement.
Step 5: Obtain an EIN
It is simple to form an LLC in Rhode Island.
To form a Rhode Island LLC, you must first submit the Articles of Organization with the Rhode Island Secretary of State, which costs $150. Apply online, in person, or by mail. The Articles of Organization are the legally binding documents that establish your Rhode Island limited liability corporation.
STEP 1: Give Your Rhode Island LLC a Name
The first and most significant step in forming an LLC in Rhode Island is deciding on a name. Make sure your name conforms with Rhode Island naming regulations and is readily searched by prospective customers.
1. Follow the Rhode Island LLC naming guidelines:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
2. Does the name exist in Rhode Island? Do a name search on the State of Rhode Island’s website to ensure that the name you choose isn’t already used.
Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to launch a company website right away, you may wish to purchase the URL to prevent others from doing so.
STEP 2: Select a Rhode Island Resident Agent
You must appoint a Rhode Island resident agent for your LLC. In other states, a resident agent is known as a registered agent.
What exactly is a Resident Agent? A resident agent is a person or corporate entity that receives vital tax forms, legal papers, lawsuit notices, and official government communication on your behalf. Consider your resident agent to be your company’s point of contact with the state.
Who may work as a Resident Agent? A resident Agent must be a Rhode Island resident or a company allowed to do business in the state of Rhode Island, such as a registered agent service. You may choose someone from your organization, even yourself.
STEP 3: File the Articles of Organization for the Rhode Island LLC.
You must submit the Articles of Organization with the Department of State to register your Rhode Island LLC. This may be done online, in the mail, or in person.
STEP 4: Draft an Operating Agreement for Your Rhode Island LLC
Although an operating agreement is not necessary in Rhode Island, it is a good idea to have one.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
STEP 5: Obtain an EIN for Your Rhode Island Limited Liability Company
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN?
When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.