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

House Bill 6344 proposes to replace Rhode Island's current Limited Liability Company (LLC) Act with a new, updated model act. This legislation directly affects all LLCs operating in the state by establishing new definitions, rules, and organizational structures for these business entities. Additionally, it mandates that Registered Limited Liability Partnerships (RLLPs) performing professional services must carry liability insurance, ranging from $100,000 to $500,000 depending on the number of professional employees, or maintain $500,000 in segregated funds. The bill aims to modernize the legal framework governing LLCs and introduce specific financial responsibility requirements for professional RLLPs.