A Rhode Island Limited Liability Company (LLC) is a type of business entity that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. It is the most flexible type of business entity available in the state of Rhode Island. A Rhode Island LLC is formed by filing Articles of Organization with the Secretary of State. The two main types of Rhode Island Limited Liability Companies (LCS) are single-member LCS and multi-member LCS. A single-member LLC is owned by one person and is treated as a disregarded entity for tax purposes. A multi-member LLC is owned by two or more people and is treated as a partnership for tax purposes. Both types of LCS provide limited liability protection to their owners, meaning that the owners' personal assets are not at risk in the event the LLC is sued or incurs debts. Additionally, LCS are not subject to double taxation, meaning that profits and losses are “passed through” to the owners and are only taxed once at the owner’s individual tax rate. By forming a Rhode Island LLC, business owners are able to enjoy the benefits of limited liability, pass-through taxation, and flexibility in management and operations.