When establishing your business, you need to determine the structure of the company you aim to build. And if you are planning to start a limited liability company, then it is important to understand the perks and protection it can offer.
In this piece of article, we will walk you through the process of LLC Rhode Island, to help you get all the paperwork accurate. Remember, defining your business structure is very important and you must not overlook it, at all.
Let’s dig in together, to understand how to start an LLC company of your own.
Name your Business:
Many entrepreneurs consider the marketing perspectives, when choosing their business name. Although marketing purposes are extremely important to consider when naming your company, there are several state laws that must be kept into consideration as well.
For instance, in general, you won’t be allowed to choose a business name that resonates with another one. Many states have restrictions on using certain words too, especially if you are in the financial sector like insurance etc. And if you are setting up an LLC business, then you are required to add “llc” at the end of your name too.
It is recommended that you check the LLC requirements before naming your business, to avoid any future complications. Furthermore, check if you have the name availability too, through the website.
If you are definite about setting up an LLC, then you must know that it is mandatory for you to have a registered agent. The agent is responsible for sending and receiving legal documents. They collect the documents on your behalf and pass it on to the person in charge of the LLC, I.e. you.
State’s LLC Article of Organization Form:
Now you need to establish the LLC as a legal entity. The file has to be filed in the state agency that manages the business filing. This is usually referred to as the article of organization form. However, this might differ in some specific states, for instance, certificate of formation. Each state has its own form for setting up the LLC. You can easily go to the website and research the form and fill it out and register it.
Prepare the Form:
Preparing the article of organization form is not a complicated process. But it is extremely important to understand the requirements and procedures. The list of documents and information required for the form, do vary from state to state. But the basic data that is required, is as listed below:
- The business name that you have decided and checked the availability for
- The address of your business place
- Your business purposes
- Your LLC management method
- Contact information of the registered agent
- Duration of the LLC
Once the form is complete, the organizers of the LLC or the business owners have to sign it and the form is ready.
File the Article:
Before submitting the form, it is important for you to file the article. Proofread the article of organization form and pay the filing fee. Each state has a different filing fee; there is no single method or price defined for it. Therefore, check with your state and their filing requirements too.
Once the documents are approved, the state will issue a certificate for you. This indicates that your LLC is registered legally and formally. This form is also used for setting up your business account and further getting your tax ID number as well. Therefore, this is important and you must get it done with precision.
At the end, you will get the operating agreement, which contains the legal, financial and management rights of all the members of the LLC. It also includes the methods of financial distribution and contribution of capital as well.
Some states do not require the operating agreement but it is always recommended that you do get one made. It brings all the members on the same page, which is extremely crucial.
The Bottom Line:
Now that everything is done, your LLC has been set up. However, it is very important to invest time and effort into keeping it up from the state’s perspective.