Rhode Island LLC Operating Agreement Information
Are you a resident of Rhode Island with the business? Protecting your personal assets should be at the top of your list. To do this, you must set up an LLC that can protect those assets from others that may try to obtain them through legal means. One of the documents that you should create when pursuing a limited liability company is called the Operating Agreement. This is a document that will detail many aspects of your company including the function of the limited liability company and the duties and responsibilities of those that are involved. Let’s go into more detail as to what this document should have, as well as why it can be so beneficial.
What Is An Operating Agreement?
In the state of Rhode Island, this is a document that is not required by the state but can serve you well once it is completed. It is advisable that you spend time adding all of the information to this document that will not be presented. What it will do is establish the liabilities, duties, powers, rights, and obligations of all of the members of your LLC. It’s an internal document, one that you do not have to officially submit to the Rhode Island Department of State, but you should keep it for yourself for reference and for legal matters. It will also establish what the bylaws are for your limited liability company, and define member control information. It can be used to definitively show that the LLC that you are creating is a separate entity, not attached to yourself or your assets.
How Does This Pertain To Creating Your LLC?
When you create your limited liability company in Rhode Island, it is simply a document that you should have on hand. It has nothing to do with whether or not the Department of State in Rhode Island will approve your request for creating a Rhode Island LLC. There are different documents for this, ones that are required, and must be submitted without any mistakes. The document in question is called the Articles of Organization, and in Rhode Island, this is Form 400.
Overview Of The Articles Of Organization In Rhode Island
This document is what you will submit to the Rhode Island Department of State. It is fairly simple to fill out. However, it will be much faster if you first accomplish a couple of tasks that will provide you with the information you will need. You will need to have chosen and registered the name of your LLC. This can be done by going to the main Rhode Island Secretary of State website.
How To Register The Name Of Your LLC
You will navigate to the business name database, and if your name is available, you will submit Form 620 which is the Reservation of Entity Name form. Once this is filed, you will then have that information to add to the Articles of Organization. The other thing that you need to do is to obtain a registered agent.
How To Get A Registered Agent
This is a company or individual that serves as the agent for the service of the process in the state of Rhode Island. Any legal papers that are sent on behalf of the LLC, if they are being sued, are handled by this company or individual. They must be a resident of Rhode Island, or they must be authorized to do this type of business per the requirements of the state. They must have a physical location, specifically a physical address, where mail can be received. Once you have the name of the registered agent, as well as their address, can then add that to the operating agreement.
Completing The Articles Of Organization
Once you have this information, you will then need to complete the rest of the document. This will include adding the principal office address of your LLC. You need to state whether this is a member-managed or manager-managed limited liability company. You must also present the addresses and names of the managers that are involved. The date on which the LLC will be active should be listed. Finally, the signature of the authorized person must be at the bottom. This will then be submitted directly to the Rhode Island Secretary of State’s office by postal mail or online accompanied by the appropriate fee which is $150.
How Long Will It Take To Approve Your LLC?
Rhode Island is one of the best states for filing for an LLC in terms of how long it will take to complete. It may only take two or three business days, but it can take only a day in some cases. Once you have filled this out, and submitted it, by the end of the week, your limited liability company will be set up.
Now that you have a better idea of what the Operating Agreement does, you should consider creating one if you already have an LLC. If you have not set up a limited liability company for your business in Rhode Island, you can do this on your own, or you can work with a business that can help you through this process.