LLCs - Changes in Effective Date
Secretary Gorbea introduced legislation in 2018 to extend the future effective date provision for limited liability companies (LLCs) from 30-days to 90-days.
How might this change help your business?
- Convenience! Future effective dates are used most frequently at the end of the calendar year, now you can file your articles of organization any time after October 2, but have the entity become effective on January 1. File when it’s convenient, so you can focus on other business tasks!
- Flexibility! Some business deals require the entity to be of record, but you may need more than 30-days to know if the venture will be successful or if the sale will be completed. If things don’t go according to plan, the entity can be dissolved prior to its future effective date without incurring a minimum tax obligation and the need for a Letter of Good Standing (LOGS) from the RI Division of Taxation.