Want to incorporate your business but unsure how to get started? Check out these steps for how to form a corporation in Rhode Island, including information on which forms you’ll need, how much it costs, and how long it takes.
Ready to start your business?
Great
by Jane Haskins, Esq.
Jane has written hundreds of articles aimed at educating the public about the legal system, especially the legal aspe...
Updated on: February 27, 2023 · 4 min read
Benefits of a corporation
Forming a corporation is a great way to protect your personal assets from liability for your business’s financial obligations. Unlike a sole proprietorship or general partnership, a corporation is a separate entity from its owners, which means that if a corporation is sued or cannot meet its financial commitments, the owners can lose only the money they have invested in the corporation—their homes, cars and personal bank accounts are not at risk. There may be additional benefits to forming a corporation, such as tax savings and increased appeal to outside investors.
Requirements for incorporating in Rhode Island
Preparing your articles of incorporation
The existence of a Rhode Island corporation begins when you file its articles of incorporation with and pay a fee to the Secretary of State. The articles of incorporation must contain the following information:
Stock structure
A corporation can offer different types of stock, called classes or series. These classes can offer different rights to their shareholders, for example, some classes of stock may offer voting rights while others do not.
Regarding stock structure, the following applies:
Ready to form a corporation? GET STARTED NOW
Naming your corporation
Before filing your incorporation papers, it is a good idea to search the online records of the Secretary of State.
You may reserve a corporate name for 120 days by filing a name reservation application with the Secretary of State.
Your corporation’s name must meet the following requirements:
Specifying incorporators
The person who files the articles of incorporation with the Secretary of State is called an incorporator. When specifying incorporators, you must meet the following requirements:
Specifying directors
Corporate directors are responsible for managing the business and affairs of the corporation and exercising corporate power. They usually focus on “big picture” issues, such as long-term strategies, and leave the day-to-day operation of the business to its officers.
In regard to directors, your corporation must meet the following requirements:
Specifying a registered agent and registered office
Every corporation must maintain a registered office and a registered agent in Rhode Island. A registered agent receives legal documents, notices, and demands for the corporation. The agent’s place of business is the registered office.
The following requirements apply when naming your corporation’s registered agent:
Stating a corporate purpose
In Rhode Island, you are not required to state a corporate purpose in the articles of incorporation.
Determining incorporation bylaws
A corporation’s bylaws outline internal rules and procedures for managing the corporation’s business. Bylaws may include any provision for regulating and managing the corporation’s affairs and typically address such matters as shareholder meetings, voting, how directors and officers are chosen, and their duties. They are not filed with the Secretary of State.
The following requirements pertain to corporation bylaws in the state of Rhode Island:
The Rhode Island Secretary of State requires a fee when filing articles of incorporation or reserving a corporation name. Corporations are also required to pay state and federal income taxes.
Ready to start a corporation in Rhode Island? LegalZoom provides Rhode Island corporate formation and filing services, including providing a registered agent in Rhode Island.
You may also like
Why Do I Need to Conduct a Trademark Search?
By knowing what other trademarks are out there, you will understand if there is room for the mark that you want to protect. It is better to find out early, so you can find a mark that will be easier to protect.
July 31, 2024 · 4min read
How to Write a Will: A Comprehensive Guide to Will Writing
Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?
July 21, 2024 · 11min read
How to Start an LLC in 7 Easy Steps (2024 Guide)
2024 is one of the best years ever to start an LLC, and you can create yours in only a few steps.
July 29, 2024 · 22min read