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SB 413

AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- THE RHODE ISLAND LIMITED LIABILITY COMPANY ACT

2025 Regular Session Introduced by John Burke and 9 co-sponsors

Rhode Island proposes amending its LLC business law; committee deferred the bill for further study, suggesting unresolved policy questions about the proposed changes.

05/13/2025 Committee recommended measure be held for further study
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Bill Summary · SB 413

Legislative bill overview

SB 413 proposes amendments to Rhode Island's Limited Liability Company (LLC) Act, the state statute governing how LLCs are formed, operated, and dissolved. The bill was introduced in February 2025 and referred to the Senate Finance Committee, but the committee voted to hold it for further study in May, indicating unresolved concerns or needed revisions.

Why is this important

LLCs are one of the most common business structures in Rhode Island, used by small businesses, startups, and larger enterprises. Changes to LLC law directly affect how thousands of businesses operate, their compliance obligations, liability protections, and operational flexibility. Modernizing or clarifying LLC statutes can either reduce regulatory burden or improve investor/creditor protections depending on what changes are made.

Potential points of contention

  • Lack of bill text details: Without seeing the specific amendments proposed, it's unclear whether changes favor business flexibility (potentially reducing protections for creditors/employees) or increase compliance requirements (potentially burdening small business owners)
  • Committee hesitation: The May recommendation to "hold for further study" suggests sponsors and committee members disagreed on provisions, timing, or need for the changes
  • Stakeholder impact uncertainty: Changes could affect LLC members' personal liability protections, tax implications, governance requirements, or dissolution procedures—each benefiting or burdening different business types differently

Compiled from official sources — confirm details with the bill’s official record.

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