The Limited Liability Company, or LLC, is a legal business structure that seeks to combine benefits from across several other traditional business forms. An LLC enjoys the same type of limited liability as a corporation, but like the sole proprietorship and partnership, it is not taxed as its own entity. Also like corporations, LLC's can have as many shareholders, or members, as it likes. Unlike a corporation however, the death or bankruptcy of one of the members will dissolve the LLC. Limited liability has historically been a primary goal of many business forms, but since the legislature authorized it in Rhode Island, the modern LLC has become increasingly popular.
Can My Business Be Formed as an LLC?
Businesses in Rhode Island can organize using whatever form they choose. The office of the Secretary of State is the organization that accepts filings by those who want to open LLC's. However, there may be an additional fee required for forming your LLC, determined by Rhode Island laws that govern the formation and actions of LLC's. These laws should certainly help you decide whether to organize as an LLC. The business structure that is appropriate for your business may take some effort to find, but finding the right business form can reward you with increased profitability.
Can I Change the Form of My Business to an LLC?
Businesses in Smithfield may sometimes change form. A company is eligible for conversion to an LLC if its situation falls under circumstances that are detailed by Rhode Island law.
How Can an Attorney Help?
Attorneys practicing business law in Rhode Island can advise you on whether it would be favorable for your business to form or convert to a LLC.