Incorporation in Rhode Island

Find the right Business Incorporation attorney in Newport, RI

Under Rhode Island law, a business may incorporate. If it chooses to do so, it is thereafter recognized as its own legal entity. As a separate entity from the owners, the business is then considered to be operating on its own when it buys and sells property, assents to contracts and exercises legal rights. A business seeking to incorporate in Rhode Island must file with the Secretary of State in accordance with established guidelines.

Benefits of Incorporation in Rhode Island

A corporation enjoys benefits that unincorporated companies do not. Primarily, it cannot be held accountable for an amount of debt greater than the value of the assets that the owners have invested in it. Had the business remained unincorporated, owners risk losing their personal property should the business become unable to satisfy its liabilities. Furthermore, banks in the Newport area prefer to evaluate the credit worthiness of a business as a whole rather than that of individual owners. This makes the process of obtaining corporate loans simpler. Lastly, a corporations charter requires that ownership be divided into stakes or "shares" of stock, all of equal size. This makes the process of transferring control much more practical.

Costs of Incorporation

Incorporation comes at a price. First, Rhode Island may charge a filing fee to process applications for incorporation. Also, the corporation will pay taxes as its own entity. The individual incomes of the owners are still taxed also, and this can mean the same income is taxed twice, known as double taxation. With proper planning and assistance from a local Newport lawyer, you can avoid this disadvantage.

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Life in Newport

Newport is located on Aquidneck Island, in Rhode Island's Newport County. It is near Providence. Why this area is popular is for the famous Newport Mansions and its reputation of being a New England summer resort. A nickname for Newport is the "City with the Summer White Houses."

Some known areas include Salve Regina University, the Naval Station, the Naval War College, the Naval Undersea Warfare Center, and the United States Navy Training Center. Other sites include Gooseberry Beach, Bailey's Beach, Ocean Drive, Newport Cliff Walk, Fort Adams, and the International Tennis Hall of Fame.

Newport is also home to many law offices and small firms. These entities train attorneys to handle any and every legal need.

From its pictures, it is evident that Newport is a small, wonderful paradise hiding in Rhode Island. It is definitely a place to visit!

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