Rhode Island

Company in Rhode Island

There are many ways to start a new fledgling company in Rhode Island. You can set up a Rhode Island limited liability company (LLC) or add your business to the many outstanding Rhode Island corporations. Rhode Island partnerships or professional limited liability companies (PLLCs) also are examples of Rhode Island companies.

Each structure has both good and bad things about it. Depending on what you want to set up and how much money you have, one type of business entity may be better than another.

Starting a Company in Rhode Island: Eligibility

In Rhode Island, anyone who can make a deal can start a business. However, people under the age of 18 cannot register a business in Rhode Island because they are under the age of majority to sign a contract.

Types of Businesses in Rhode Island

What kind of company you choose will depend on your needs. Choose an LLC or corporation if you want to protect your personal assets, especially your home and car(s). Even though Rhode Island partnerships don’t have to be registered, you can still set one up under an LLC to protect your personal assets and get tax benefits.

A Rhode Island limited liability company (LLC) is a popular choice as a business entity, as it can be set up quickly and has a less formal setup than Rhode Island corporations. If you wish to go public, you’ll need to establish a corporation.

What is a Rhode Island LLC?

A Rhode Island LLC is a hybrid business structure that combines the pass-through taxation of a partnership or sole proprietorship with the liability protection of a corporation. Members are the people who own an LLC.

LLC members are only responsible for the percentage of debt of what they’ve invested into the company. People, corporations, or even other LLCs may own an LLC. Therefore, an LLC is a flexible entity. Even a partnership can become part of an LLC if it wishes to register its business.

According to the IRS, a domestic LLC that has at least two members can be included among Rhode Island partnerships for federal tax purposes. It may also file a Form 8832 and be treated as a corporation for tax purposes.

Rhode Island Corporations – How They’re Set Up

A corporation is a separate legal entity that is owned by shareholders who are not personally responsible for the company’s debts and liabilities. The company is run by a board of directors, who are chosen by the shareholders.

Articles of incorporation must be filed for a corporation to be legal. The goal of corporations is to make a profit. Creating a Rhode Island Limited Liability Company (LLC) or Corporation

To set up Rhode Island LLC or Corporation, you’ll need to do the following:

  1. Obtain a unique name for your business. You can find a unique business name through the online portal for the Secretary of State (SOS). Make sure the name is a good match for what you want to sell.
  2. Get the help of a registered agent, who is a Rhode Island-based business or person who can file and receive legal business documents on your behalf. They must be available during regular business hours.
  3. Choose your directors if you plan to incorporate them.
  4. File the Articles of Organization (for an LLC) or the Articles of Corporation (if you’re setting up a corporation). To move forward with the process, you can fill out an application form online.
  5. Draft an Operating Agreement for an LLC or Create the Bylaws for your Corporation. These documents are kept in-house to frame your company’s operations and to prevent internal conflicts.
  6. Get an Employer Identification Number (EIN) to open a bank account for your business and to pay employees.
  7. Set up a bank account for your business and a system of accounting that matches the needs of your company in Rhode Island.
  8. Check to see if you have all the necessary permits and licenses.

Creating a corporation in Rhode Island is similar to establishing an LLC, but the process is more complicated and takes longer. 

Putting Together a Business Plan for Your Rhode Island Company

Before you start the registration process, you’ll need to come up with a business plan and decide on the idea for your new business. This is easy to do if you look for help through the Small Business Administration (SBA).

If you want to make a more detailed plan, you’ll need to stick to a traditional structure. The following parts should be included in this format.

Executive Summary: In this section, you’ll tell the reader what your company does and its mission. It also includes plans for growth.

Company Description: This part of your business plan provides information about the nature of your business and explains how it will help customers and solve their problems. It also has the names of the professionals on your team and the location of your business. 

Market Analysis: This section goes into more detail about the trends in your field and how your business will handle them.

Business Setup: This part talks about how your Rhode Island LLC or corporation is set up and how it is run. You can show the key roles of your executive staff on an organizational chart.

Items and Service Offerings: This section introduces your services and products and talks about what makes them great.

Market and Sales: In this section, you’ll explain how you plan to bring customers to your business and keep them interested in your products and services. You can also use this section to project how much you will make in the future.

A Request for Funding: If your goal is to ask for money, you can use this section to explain why you need the funding. Elaborate on what you’ll do with the money and set a limit on how much of the funding will go to items, such as equipment or inventory.

Financial Projections: Show the reviewer why your business will be successful with graphs and charts.

Appendix for More Information: Add documents that back up your claims and list them in an appendix. This content could include executive resumes, pictures of products, reference letters, credit histories, contracts, permits, patents, and licenses.

Register Your New Business with the Corporation Center in Rhode Island Now

Need help getting your company in Rhode Island established? Fill out an application form now by going online. This will make things easier. Call the Corporation Center at (800) 580-4870 today to get started.