In Rhode Island, the most common structure for real estate enterprises is an LLC. This is due to the ease with which a limited liability corporation (LLC) may be formed and operated.
If your real estate firm is sued, an LLC may safeguard your personal assets (vehicle, home, money). LLCs also provide credibility and tax-saving possibilities.
In Rhode Island, you may form a real estate LLC by filing Articles of Organization with the RI Department of State. In Rhode Island, forming a real estate LLC costs $150.
The first step in organizing a real estate LLC is to choose a firm name. You must offer your company a distinct name that complies with Rhode Island naming regulations.
When you submit your Articles of Organization, you will formally register your name.
Examine if your company’s name is accessible as a web domain. You may choose to purchase the URL in order to prevent others from using it.
You must name a registered agent, also known as a resident agent in Rhode Island, when you submit your Articles of Organization.
A resident agent’s function is to accept legal paperwork for your LLC, such as service of process and tax notifications.
A person or a registered agent service might serve as your real estate LLC’s resident agent for service of process. Although you may act as your own resident agent, many company owners choose to employ a registered agent service.
Consider the following before hiring a resident agent:
You must complete Form 400 – Articles of Organization with the Rhode Island Department of State to register your Rhode Island LLC. This may be done in person, via mail, or online.
An LLC operating agreement is a legal document that defines your real estate LLC’s ownership and member responsibilities.
An operating agreement may benefit even single-member LLCs.
Your operating agreement should include the following provisions:
You may include conditions in your real estate LLC operating agreement as long as they do not violate Rhode Island law.
The US Internal Revenue Service (IRS) uses an Employer Identification Number (EIN) to identify and tax firms. It’s essentially a business’s Social Security number.
Following the Formation of a Real Estate LLC
