A limited liability partnership (LLP) is one way a company can choose to legally organize itself. The key benefit of an LLP are that the owners, known as partners, have the freedom to be completely involved in the running of the company without placing their personal assets at risk. In other words, the partners enjoy limited liability without giving up the ability to control the company. There are at least two partners in an LLP, and all of the partners share equally in the LLP’s management.
What Are the Requirements for an LLP?
Rhode Island has a number of requirements for a company must satisfy if they want to be an LLP. Perhaps the most important requirement is that a company needs to file paperwork with the Rhode Island Department of State. Additionally, a company must come up with a name that ends with “L.L.P.”, “LLP”, or “limited liability partnership.” An LLP must also either establish its principal office in Rhode Island or appoint a registered agent who is willing and able to receive official documents on behalf of the company. If the LLP intends to offer a professional service, then it will need to obtain a license to operate from the appropriate licensing agency and liability insurance. Finally, an LLP must determine a location where it will keep a copy of all of its business records.
What Paperwork Do I Need to Form an LLP?
With regard to the paperwork that a company will need to file, it can be either filled out online or printed out and sent in via the mail. If you are looking to register a domestic LLP, which is an LLP that has not been registered elsewhere, you will have to fill out a Registration of Limited Liability Partnership. The form requires for one to provide the name of the LLP, the street address of the LLP’s principal office, and the names and addresses of all of the partners who live in Rhode Island. You will also need to include the name and address of a registered agent if the LLP’s primary office is not in Rhode Island, a street address for the location where the LLP’s business records will be maintained, a statement about the type of business in which the LLP is involved, and the contact information for whoever is filing the document. At least one of the partners needs to sign the form.
If the LLP has already been registered once in another jurisdiction, then it is a foreign LLP and it will need to fill out a Notice of Registration. The form has all of the same information requirements as the Registration of Limited Liability Partnership, as well as a few more. In order to complete this form, you will also need to include an additional name for the LLP if the original name cannot be used in Rhode Island and the original jurisdiction where the company was first registered.
What Benefits Does Rhode Island Give to an LLP?
The state of Rhode Island has created a number of programs to help new companies thrive in the state’s economy. Small businesses involved in science research and innovation can receive money through grants from the Innovate RI Fund and the Innovation Voucher program. New companies can also receive essential financing, such as working capital or money for purchasing real property, through the First Wave Closing Fund.
What Disadvantages Does Rhode Island Give to an LLP?
In Rhode Island, an LLP’s registration is not indefinite. Domestic LLPs must file a renewal application every year during the 60 days preceding the LLP’s anniversary. Foreign LLPs must file a new notice every two years on its by its biennial anniversary.
Should I Hire a Business Lawyer?
It can be difficult to register a company as an LLP in Rhode Island. Therefore, you should hire a Rhode Island business lawyer to assist you.