Rhode Island is taking multiple steps to promote its economic environment. With programs like the Qualified Jobs Incentive Tax Credit, a lowered corporate tax rate, and education and training grants for small businesses, starting an LLC in Rhode Island can prove highly profitable and sustainable. Since the LLC business structure also brings multiple benefits for the business owners, let’s find out how you can start an LLC in Rhode Island and enjoy all the benefits, incentives, and grants:
Choose a Name for LLC
To start an LLC in Rhode Island, you must begin by thinking of a unique name. The name of your LLC must not confuse the audience with another business in the state. It must also comply with the state’s business name guidelines and be available for registration. You can search for the availability of your business name ideas at the Rhode Island Chamber of Commerce website.
Reserve the LLC Name
Once you have found a desirable, available name for your business, reserve it with the Rhode Island Department of State. It only costs $50 and reserves your business name for 120 days. This step is optional, but it can save you from losing your LLC name idea and repeating the first step of starting an LLC in Rhode Island.
Provide an LLC Address
All Rhode Island LLCs must have a dedicated address. This address cannot be a P.O. Box and must be a commercial or residential physical street address. The address can be in our out-of-state.
Click here to get a virtual address for your business if you don’t have an office. A virtual address can protect your privacy and prove helpful if you travel frequently or plan to move soon.
Appoint an LLC Registered Agent
The Rhode Island Secretary of State requires every LLC in the state to name a representative. This representative, also called a registered agent, is responsible for handling business paperwork and filing reports with the Secretary of State.
The registered agent must have a physical street address in the state and be present during work hours to represent the business. You can appoint anyone as your LLC’s registered agent, including yourself, a business partner, or a professional registered agent service, as long as they fulfill the eligibility criteria. The appointed agent must accept their position formally for the successful completion of this step.
File Articles of Organization
The articles of organization are the official form required to start an LLC in Rhode Island. It is submitted to the Rhode Island Department of State and requires the following information:
Business name and address
Registered agent name and contact information
Name and addresses of business members
Name and signature of the person filing the articles of organization
How the LLC wishes to be treated for Federal income tax
Whether the LLC is manager-managed or member-managed
The information on articles of organization must be filed very carefully, as any mistake can delay the processing time. The normal processing time for this form is up to 7 days. The filing fee for the form is $150.
File the Annual Report
All LLCs in Rhode Island must file annual reports, including in their first year. The report requires almost the same information as the articles of information. The fee for filing the report is $50.
Create an LLC Operating Agreement
An LLC operating agreement outlines the business structure, procedures, and guidelines for the smooth running of a business. You don’t need to submit an operating agreement for starting an LLC in Rhode Island, but getting one as an internal document is a good idea as it offers significant protection for the business.
The contents of the operating agreement can include business members’ contributions and responsibilities, voting rights, profit sharing, etc., so everyone involved stays on the same page. You can also include terms of the dissolution of business, processes of adding or eliminating business members, employee recruitment procedures, and other such guidelines to minimize disputes and resolve unwanted claims.
Obtain an EIN
EIN, short for Employer Identity Number, is a nine-digit number provided to businesses by the Internal Revenue Service (IRS). The number indicates the business’s registration with the federal government. It enables a business to open a bank account, file and report taxes, and hire employees.
Getting an EIN is easy. Simply register your business with the IRS for free and get an EIN so you can officially start an LLC in Rhode Island.
Get a Website and Market Your Business
The above eight steps will establish your business on paper. But in today’s digital age, establishing an online presence of a business is equally important. Customers search for all their needs and want online. Therefore, you must get a website and market your business.
You can opt for DIY-ing the website-building process. However, securing a host, buying a domain, building an interface, picking a color scheme, designing a layout, choosing fonts, writing copy, and creating visual content can be overwhelming if you don’t have prior experience. Not to mention, every business website requires frequent SEO optimization and maintenance to keep the business running.
Marketing the business is also a full-time job. You must create social media profiles for your business, set up business accounts on platforms like Yelp, Nextdoor, etc., and advertise your business in local newspapers and other websites. You will also need to brainstorm marketing campaigns and create their content.
As a small business owner without experience in building and managing websites or marketing, you may not have the budget to hire different teams for these tasks. But don’t worry! You can still successfully complete and continue to execute this step easily with Trady.com.
Trady.com is a website-building service dedicated to trades and home services companies. Building a website with Trady.com is fast, easy, and cheap. It brings exclusive features like booking appointments and making payments online that make your work easier. You can also opt for Trady.com’s 360 marketing services to further make your life and work easier. Manage your website and business marketing with Trady.com through your smartphone, so you can focus on what you do best, i.e., providing exceptional services to your customers.