LLC, better known as a limited liability company, is a legal way to structure your business. It helps you define a structure along with combining the limited liability, in an extremely flexible manner.
The lack of formalities in sole proprietorship and partnership are easily overcome by opting for a limited liability company. If you are looking to limit your personal liability for lawsuits or personal debts, then it is time to get LLC in Rhode Island.
However, before you plan to set up an LLC, there are a few requirements that are important to fulfill. You need to acknowledge them before starting a limited liability company as they will help you in the long run.
What is an LLC?
But before digging deeper into the details, understanding what LLC is, is important. It is crucial to understand the structure you are opting for.
The process of setting up an LLC is usually similar in all states. You have to choose an LLC name, get a registered agent and file the articles of organizations. The methods to do all of this, might vary a bit, depending on your state’s requirements and regulations.
Requirements of an LLC:
Once you are definite that you want to set up a limited liability company, then it is time to start fulfilling the requirements for it. Here is what you need to focus on:
Obtaining the LLC Name:
The very first requirement of setting up a limited liability company is to obtain a name for it. The LLC name has some basic regulations and you need to follow them. They are not complex at all.
First, you need to certify that the name you choose is original. No other business within your state can have the name that you are choosing or planning to choose. Secondly, you have to make sure that the name you choose has “LLC” mentioned in it. You can check with any other variation that is allowed in your state and add it to your company’s name.
You have to set it apart according to your state’s regulations. Check in with the requirements and name it accordingly. Lastly, you have to make sure that the name has no restricted terms in the name either.
Once you fulfill these requirements in your company’s name, you are good to move forward to the next requirement.
Getting a Registered Agent:
Second, you have to get a registered agent too. This is yet another mandatory requirement that has to be fulfilled when you are setting up a limited liability company. The registered agent is a business or an individual that is responsible for representing your LLC. They serve your legal papers and receive them, on your behalf.
The registered agent that you hire, must be a resident of your state. Or they should have the authorization to work in your state. Therefore, when looking for an agent, make sure that you look into all the aspects and consider their legal functionality too.
Publishing a Public Notice:
This is not mandatory but some states do require the LLC to publish a public notice. The public notice is sometimes published many times before the filing of the articles of organization is done. It is important that you check this requirement with your state beforehand. Your local paper will help you in completion of this requirement. It is simple and easy to manage.
Articles of Organization:
This is a mandatory part of setting up an LLC and is crucial in all states. It is a legal document that provides all the important data, about your company, to the legal authorities and all of your team members as well.
It includes the name and address of your LLC, name and address of the registered agent and name and signatures of the owners of the LLC. You can check with your state and its form, and fulfill their requirements accordingly.
Once all the requirements are completed, you can move ahead with making the filing payments and obtaining the permits and licenses and forming the operating agreement. You need to make sure that everything is being done legally and formally and that you are fulfilling the formal regulations of your state.