Rhode Island Limited Liability Company Pre-Organization Kit
Avoid the common pitfalls of starting up a limited liability company by using our Pre-Organization Kit.
By using the included worksheets and checklists, you will have before you all of the basic data you will need to complete your organization paperwork. But perhaps even more important, by using this kit you will also uncover any potential differences of opinion among the organizers.
Often, conflicts and demands are not known until the actual process of determining the company’s structure begins. Frank discussions regarding the questions of voting rights, distribution of profits, amounts of contributions, and other management decisions often will enable potential associates to resolve many of the difficult problems of company management in advance, thereby avoiding much larger and more costly problems in the future.
The use of a written worksheet will also provide all persons involved with a clear and permanent record of the issues discussed and the decisions made, which may be important as your company grows.
Included in this packet are the following:
· Instructions for completing Pre-Organization Worksheet
· Pre-Organization Worksheet
· Pre-Organization Checklist
· Document Filing Checklist
This Kit has been designed for use in Rhode Island.
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Rhode Island Limited Liability Company Pre-Organization Kit
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Rhode Island ports (mandatory) Change of Address of Registered Agent (mandatory) Articles of Dissolution (mandatory, if applicable) Any other required state forms
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Application for Reservation of Limited Liability Company Name (if desired) Articles of Organization (mandatory) Amendments to Articles of Organization (mandatory, if applicable) Annual Company Reworkers compensation requirements Check insurance requirements Prepare company accounting ledgers Prepare company record book (looseleaf binder)
LLC Document Filing Checklist Rhode Island
? ? ? ? ?ting Agreement If desired, have attorney review Articles of Organization prior to filing Review tax impact of organization with an accountant Check state tax, employment, licensing, unemployment, and for information Complete Pre-Organization Worksheet Check annual fees and filing requirements Reserve company name, if desired, by filing with the state. Prepare Articles of Organization Prepare Opera________________________________________________
LLC Pre-Organization Worksheet
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LLC Pre-Organization Checklist Rhode Island
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Write state limited liability company office _____ ______________________________________________________________________________ Amendments to Operating Agreement (majority/%/unanimous?): _________________________ ____________________________________________________________ Termination of limited liability company: ____________________________________________ Amendments to Articles of Organization (majority/%/unanimous?): __________________f members: __________________________________________________________ Insurance needs: ________________________________________________________________ New members: ________________________________________________________ ________________________________________ ________________________________________
Transfer of membership interests: _________________________________________________ Expulsion o_______________________________________ Salaries of members: Name ___________________________________ ___________________________________ ___________________________________ Salary _________________________________________________________ Financial authority : Name ___________________________________ Authority to Do ________________________________________
Loans to members: ______________________for members actions: (majority/%/unanimous?): __________________________ Fiscal Year: ___________________________________________________________________ Accounting type (cash or accrual?): __________rum for members meetings: ____________________________________________ Annual members meeting: Place ______________________________________ Date ____________________ Time _____________
Required vote __________________________________ Is qualification in other states necessary? ____________________________________________
LLC Pre-Organization Worksheet
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Company Operating Agreement
Required quofirst members meeting: ____________________________________________ Proposed bank for company bank account: ___________________________________________ Cost of organization: ____________________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________
Proposed date of _____________ __________________________________________ __________________________________________ __________________________________________
Proportionate Share of Profits and Losses
___________________
Distribution and retention of profits and losses: _______________________________________ Initial indebtedness: $ _________________ Management of the company: Name
_____________________________nd Losses
________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________________________________________ __________________________________________ __________________________________________ __________________________________________
Proportionate Share of Profits a_________________ _________________
Value _________________ _________________ _________________ _________________ _________________ _________________
Members' share of profits and losses: Name
___________ _____________________________________ _____________________________________ _____________________________________
Value _________________ _________________ _________________ _________________ ___________________________________ ________________ ________________ Cash/Property/Services _____________________________________ _____________________________________ _______________________________ervices _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ ___________ Additional contributions: $ Date when due: Name ____________________ ____________________ ____________________ ____________________ ____________________ ____________________
Cash/Property/S__________ Date when due: ________________
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Name ____________________ ____________________ ____________________ ____________________ ____________________ ___________ed liability company's registered agent and office address: __________________________ ______________________________________________________________________________ Initial investment total: $ _________ _____________________________________ _____________________________________ Phone _________________ _________________ _________________ _________________ _________________ _________________
Limit_ ____________________ ____________________ Address _____________________________________ _____________________________________ _____________________________________ __________________________________umber of proposed members: ____________________________________________________ Proposed members of the company: Name ____________________ ____________________ ____________________ _____________________________________________________________ _________________________________ ___________________________________________ _________________________________ ___________________________________________ N_________ Proposed date to begin company business: ___________________________________________ Names and addresses of those who will act as organizers: Name Address _________________________________ _/trademarks: ____________________________________________________
Organization Matters
State of organization: Rhode Island Company existence (limited or perpetual?): _________________________________________________ ______________________________________________________________________________ State/local licenses required: ______________________________________________________ Patents/copyrights_____________________________________________________________________________
LLC Pre-Organization Worksheet
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Type of Business
Purpose of limited liability company: __________________________________________________________________ Other places of business: _________________________________________________________ ______________________________________________________________________________ ___________________________________________________________________ Ownership of principal place of business (own or lease?): _______________________________ _______________________________________________________________ ______________________________________________________________________________ Description of principal place of business: ___________________________________________ _______________ __________________________ __________________________ __________________________ __________________________
Location of Business
Address of principal place of business: ____________________________________________ ________________________ ________________________ ________________________ ________________________ ________________________ Phone __________________________ _______________________orming the Limited Liability Company
Name _______________________ _______________________ _______________________ _______________________ _______________________ _______________________ Address _____________________ Alternate choices: _______________________________________________________________ ______________________________________________________________________________
Parties Involved in Fd Secretary of State Corporations Division 100 North Main Street Providence, RI 02903
Proposed Name of the Limited Liability Company
First choice: ____________________________________________________mend its Operating Agreement.
Instructions for LLC Pre-Organization Worksheet
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LLC Pre-Organization Worksheet Rhode Island
Name/Address of State Limited Liability Company Department:
Rhode Islanermination of how the limited liability company will amend the Articles of Organization. Amendments to Operating Agreement: Here should be the determination of how the limited liability company will aompany end? Here list any considerations relating to the dissolution of the limited liability company that you may wish to be considered. Amendments to Articles of Organization: Here should be the det life and/or disability insurance. New members: Will new members be allowed in the company? Here note the terms and conditions for their entry. Termination of limited liability company: How will the csider the types of insurance that you will need, ranging from general casualty to various business liability policies. Also consider the need for the members or the company to provide the members withly" or may be unanimous or majority consent of the other members. Expulsion of members: Here you should consider the terms and conditions for the removal of members. Insurance: Under this heading, conision should be noted as to whether and how members are to be allowed to transfer their ownership interests in the limited liability company to third parties. This may range from "not at all" to "freeectly to its members. Salaries to members: Here you should decide if the members will earn a salary for their work on behalf of the company. Transfer of membership interests: Under this listing, a dec in the name of the limited liability company.
Instructions for LLC Pre-Organization Worksheet
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Loans to members: In this item, decide if you wish the company to have the ability to make loans dirvance. Please consult with a competent accounting professional. Financial authority: Here list the authority of each proposed member to sign checks, borrow money in the company name, or sign documentsand can be made to be unanimous. Fiscal year and accounting type: For accounting purposes, the fiscal year and accounting type (cash or accrual) of the limited liability company should be chosen in adiability company that must vote in the affirmative in order to officially pass any member business. This is normally set at a "majority" (more than 50 percent), although this figure can be set higher embers meeting should be specified. Required vote for member action: Once it is determined that a quorum of members is present at a meeting, this is the percentage of ownership shares of the limited licially transact any company business. This is normally set at a "majority" (over 50 percent), although this figure can be set higher. Annual members meeting: The date, time, and place of the annual ma competent business attorney. Required quorum for members: This is the percentage of ownership of shares in the limited liability company that must be represented at a members meeting in order to offmpany from another state is referred to as a "foreign" limited liability company. If you desire that your limited liability company qualify for activities in another state, you are advised to consult o "qualify" the limited liability company in that state. This generally requires obtaining a Certificate of Authority to Transact Business from the other state. In this context, a limited liability cos of the organization process. Out-of-state qualification: If the limited liability company desires to actively conduct business in a state other that the main state of organization, it is necessary the web address listed above). This cost should also reflect the cost of obtaining professional assistance (legal or accounting); the cost of procuring the necessary supplies; and any other direct costd by the members at the first members meeting. Cost of organization: The state fee for organization in Rhode Island is a filing fee of $150. (Please note that a complete fee schedule is available at tfor company bank account: In advance of organization, you should determine the bank which will handle the company accounts. Obtain from the bank the necessary bank resolution form, which will be signe company. Date of first members meeting: This will be the date proposed for holding the first meeting of the members, at which the company Operating Agreement will be officially adopted Proposed bank mited liability company: If the business is to be managed by members only, or members and managers, or managers only, note the decision here. Also note who will actually comprise the management of the its profits and losses to each partner. If the company will retain a portion of the profits for reinvestment, note that here.
Instructions for LLC Pre-Organization Worksheet
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Management of the lirs. This may, but need not, be based on the amount of the contributions of the members to the company. Distribution of profits and losses: Here decide how the limited liability company will distributeompany, please list it here. Share of profits and losses: Under this heading is noted how the members decide in what proportions the profits and losses of the business will be distributed to the membeIf there are to be planned additional member contributions of money, services, or property, list them here. Initial indebtedness: If there is to be any initial indebtedness for the limited liability cwnership interests in the limited liability company. This is also referred to as "paid-in capital." List also the dates on which the contributions are to be made. Additional contributions by members: Initial Investment: This figure is the total amount of money or property that will be transferred to the limited liability company upon its beginning business. This transfer will be in exchange for o be a member of the limited liability company. The registered agent need not be a lawyer. Normally, the main owner or the attorney of the limited liability company is selected as the registered agent.c person be available as the agent of the limited liability company for the service of process (that is: to accept subpoenas or summons on behalf of the limited liability company). The person need notstered agent and address: Here you should list the name and actual street address of the person who will act as the registered agent of the limited liability company. All states require that a specifiddresses of the proposed members of the company, although in Rhode Island, it is not required that these names and addresses be stated in the Articles of Organization. Limited liability company's regibers: In Rhode Island, the minimum number of members for a limited liability company is one. Members may be natural persons or business entities. Proposed members: Here you should list the names and aizers: This should be the person (or persons) who will prepare and file the Articles of Organization. In Rhode Island, organizers need not be a natural person, nor need they be a member. Number of memthe Articles of Organization), the organizers of your limited liability company will continue to be legally liable for any business conducted on behalf of the proposed limited liability company. Organed date to begin company business: This should be the date on which you expect the limited liability company to begin its legal existence. Until this date (actually, until the state formally approves any existence: The choices here are perpetual (forever) or limited to a certain length. In virtually all cases, you should choose perpetual.
Instructions for LLC Pre-Organization Worksheet
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Proposinto the limited liability company, they should be noted here. State of organization: In general, the limited liability company should be organized in the state in which it will conduct business. Compcal attorney for details regarding the types of licenses required for your locality and business type. Patents/copyrights/trademarks: If patents, copyrights, or trademarks will need to be transferred ited liability companies. Additionally, certain types of businesses will require health department approvals, state board licensing, or other forms of licenses. If necessary, check with a competent loirements for licenses to operate your type of business. Most states require obtaining a tax ID number and a retail, wholesale, or sales tax license. A Federal tax ID number must be obtained by all lime" business purpose clause in describing the main activity of the business; for example, "to conduct any and all lawful business." State/local licenses required: Here you should note any specific requnot be a post office box. If the limited liability company is homebased, this address should be the home address. Purpose of limited liability company: All states provide for the use of an "all-purposthe people who are involved in the planning stages of the limited liability company. Principal place of business: This must be the address of the actual physical location of the main business. It may $50. The name must contain the words "Limited Liability Company" or the abbreviation "LLC" or "L.L.C." Parties involved: This listing should provide the names, addresses, and phone numbers of all of to other names. It is often wise to clearly explain the business of the limited liability company through the choice of name. In Rhode Island, a company name may be reserved for 120 days for a fee ofms. Company name: The selection of a name is often crucial to the success of a limited liability company. The name must not conflict with any existing company names, nor must it be deceptively similar latest available information will save you time and trouble. Note that you can also download state forms and fee schedules at http://www2.corps.state.ri.us/corporations/corp_search/index.php?help=forent, requesting all available information on organization of a limited liability company in the State of Rhode Island, as state laws and fees charged for organization are subject to change. Having thematters.
Instructions for LLC Pre-Organization Worksheet Rhode Island
Address of state limited liability company department: The address is listed on the Worksheet. You should write to this departmability, whether in contract, strict liability, or tort (including negligence or otherwise) arising in any way out of the use of these materials. An attorney should be consulted for all serious legal y, or consequential damages (including, but not limited to, procurement of substitute goods or services; loss of use, data, or profits; or business interruption) however caused and on any theory of li i) FindLegalForms, Inc, its agents, partners, or affiliates, or ii) the providers, authors or publishers of the forms, be responsible or liable for any direct, indirect, incidental, special, exemplarot give any express or implied warranties of merchantability, suitability or completeness for any of the materials for your particular needs. The materials are used at your own risk. In no event will: Inc. does not provide legal advice. The purchase and use of these materials is subject to the "Disclaimers and Terms of Use" found at findlegalforms.com. These materials are provided "AS-IS." We do nur state's Corporations Division or visit their website at http://www2.corps.state.ri.us/corporations/. Disclaimer No Attorney-Client relationship is created by use of these materials. FindLegalForms,tion Worksheet Pre-Organization Checklist Document Filing Checklist
Note: Please note that the state specific information provided in this packet may change. To ensure its accuracy, please contact yoincipals of the company with vital support for later decisions that may be required. Included in this kit are the following: · · · · Instructions for completing Pre-Organization Worksheet Pre-Organizadifficult problems of company management in advance. The use of a written worksheet will also provide all persons involved with a clear and permanent record of the information. This may provide the prk discussions regarding the questions of voting rights, distribution of profits, amounts of contributions, and other management decisions often will enable potential associates to resolve many of the pinion among the persons who are desiring to form the limited liability company. Often, conflicts and demands are not known until the actual process of determining the company's structure begins. Franbility company's purpose, structure and governance prior to organization within the State of Rhode Island. The process of preparing this worksheet will also help uncover any potential differences of oInformation LLC Pre-Organization Kit Rhode Island
Provided under agreement with copyright holder, © Nova Publishing Company 2004
This kit provides tools for determining the details of a limited lia Rhode Island
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Rhode Island Limited Liability Company Pre-Organization Kit
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Rhode Island Limited Liability Company Pre-Organization Kit
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