Rhode Island § 7-16-76 - The Rhode Island Limited Liability Company Act
Full text of Rhode Island Rhode Island General Laws § 7-16-76 — The Rhode Island Limited Liability Company Act, with citation guidance and answers to common questions.
§ 7-16-76. The Rhode Island Limited Liability Company Act
R.I. Gen. Laws § 7-16-76
§ 7-16-76. Low-profit limited liability company.
(a) A low-profit limited liability company shall at all times significantly further the accomplishment of one or more charitable or educational purposes within the meaning of § 170(c)(2)(B) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c)(2)(B), or its successor, and would not have been formed but for the entity’s relationship to the accomplishment of charitable or educational purposes.
(b) A limited liability company that intends to qualify as a low-profit limited liability company pursuant to the provisions of this section shall so indicate in its articles of organization, shall organize under the provisions of § 7-16-6, and shall further state that:
(1) No significant purpose of the entity is the production of income or the appreciation of property; provided, however, that the fact that an entity produces significant income or capital appreciation shall not, in the absence of other factors, be conclusive evidence of a significant purpose involving the production of income or the appreciation of property.
(2) No purpose of the entity is to accomplish one or more political or legislative purposes within the meaning of § 170(c)(2)(D) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c)(2)(D), or its successor.
(c) If an entity that met the requirements of this section at its formation at any time ceases to satisfy any one of the requirements, it shall immediately cease to be a low-profit limited liability company, but by continuing to meet all the other requirements of this chapter, will continue to exist as a limited liability company. The name of the entity must be changed to be in conformance with § 7-16-9.
(d) Nothing in this section shall prevent a limited liability company that is not organized under it from electing a charitable or educational purpose in whole or in part for doing business under this chapter.
(e) Except as otherwise provided in this section, all provisions of the Rhode Island Limited Liability Act, chapter 16 of this title, applicable to domestic limited liability companies are applicable to low-profit limited liability companies.
History of Section.
P.L. 2011, ch. 67, § 2; P.L. 2011, ch. 79, § 2.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 7-16-76
What does Rhode Island General Laws § 7-16-76 cover?
Section 7-16-76 ("The Rhode Island Limited Liability Company Act") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Rhode Island § 7-16-76?
A common citation format is "Rhode Island General Laws § 7-16-76" (Rhode Island). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 7-16-76 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Rhode Island.