Rhode Island LLC Costs
In Rhode Island, small business owners and entrepreneurs often benefit from forming a limited liability company. An LLC is a business structure that gives business owners liability protection, special tax breaks, special state-specific incentives, and a flexible management structure. A common misconception is that LLC formation in Rhode Island is expensive and complicated. However, it is a straightforward process and is affordable for most business owners.
Recommended LLC Services
Costs to start an LLC in Rhode Island
LLC Articles of Organization ($150)
Rhode Island annual report fee ($50)
- You must file an annual report fee with the Rhode Island Department of State.
- You can file your annual fee online using the Rhode Island Office of the Secretary of State website.
- Or, you can complete the annual report form (Form 632) and submit it by mail or in person.
- The annual fee is $50.
- The due date for the Rhode Island annual fee is between September 1st and November 1st every year.
- Failing to file an annual report fee will result in a $50 penalty, and you could face involuntary dissolution.
Rhode Island registered agent fee (varies between $50 to $300)
- You must appoint a registered agent when forming an LLC in Rhode Island.
- It alerts the Rhode Island Department of State that someone is available to receive service for your LLC during business hours.
- Anyone can act as a registered agent in Rhode Island as long as they meet the state requirements, including yourself.
- The total cost of appointing a registered agent will depend on the appointed agent, the needs of your LLC, and the state filing fees.
Fees to form a foreign LLC in Rhode Island ($150)
- You must register an LLC as a foreign LLC if you have an existing one in a different state and with to expand into Rhode Island.
- Using the Rhode Island Business Services Online Filing System, you can register as a foreign LLC online.
- Or, you can complete the Application for Registration Foreign LLC Form 450) and submit it by mail or in person.
- The LLC cost to register a foreign LLC in Rhode Island is $150.
LLC name reservation fee ($50)
- In Rhode Island, an LLC does not have to register a company name before formation.
- But, when reserving a company name, you are ensuring no one else can reserve and register the same Rhode Island LLC name.
- All Rhode Island LLC names must be unique and available in the state.
- You can reserve an LLC name for up to 120 days before the formation process.
- You can reserve the Rhode Island LLC name online using the RI Business Services Online portal.
- Or, you can complete the Application for Reservation of Entity Name (Form 620) and submit it by mail or in person.
- The filing cost to reserve a Rhode Island LLC name is $50.
DBA filing fees in Rhode Island ($50)
- The term DBA stands for ‘doing business as.’ A DBA, or an assumed name, is any name an individual or business uses to operate that is not the legal name.
- The DBA name you choose for your business must be unique.
- You can register a DBA online using the RI Business Services Online Filing System.
- Or, you can complete the Fictitious Business Name Statement (Form 624B) and submit it by mail or in person.
- The LLC filing fee to register a Rhode Island DBA is $50.
Cost of certified document copies ($10)
- You will order your Rhode Island LLC documents by submitting a request with the Rhode Island Department of State Business Services Division by mail, phone, or in person.
- The cost for certified LLC documents is $10 plus $.15 for every additional page.
Rhode Island Certificate of Good Standing ($22 online)
- Financial institutions will require a copy of your LLC’s Rhode Island Certificate of Good Standing before allowing you to open a business bank account.
- You must read the instructions and submit a request for a Certificate of Good Standing online, by mail, phone, or in person.
- The fee for a Certificate of Good Standing in Rhode Island is $22 online and $20 by mail, in person, or by phone.
Steps to start an LLC in Rhode Island
Choose a business name
When deciding on an LLC name in Rhode Island, you will want to consider a few things.
- All LLC names in Rhode Island must be unique and available for use in the state.
- An LLC name in Rhode Island must meet all state naming requirements.
- It is always a good idea to check web domain availability to keep branding and marketing easy.
You will use the State of Rhode Island Secretary of State website to conduct a name search.
LLC name reservation fee
Rhode Island does not require the reservation of an LLC name before formation.
The cost to reserve a company name in Rhode Island is $150. An LLC name is good for up to 120 days. Rhode Island does not require you to reserve an LLC name.
Appoint a Rhode Island registered agent
In Rhode Island, you must appoint a registered agent when forming an LLC in the state.
The price for a Rhode Island registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Rhode Island is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a Rhode Island resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Rhode Island LLCs. The price is $99 per year.
- Total Out The Door Rhode Island LLC Formation Service Package – $51 a month and includes:
- Rhode Island State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 RI filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Rhode Island Articles of Organization
You must file Articles of Organization with the State of Rhode Island.
You can file Articles of Organization online using the RI SOS Business Services Online Filing System.
Or, you can complete the Articles of Organization form (Form 400) and submit it by mail and in person.
The cost to file Articles Organization in Rhode Island is $150.
Rhode Island does not offer expedited LLC services.
Mailing and physical address
The State of Rhode Island Secretary of State
Division of Business Services
148 W. River Street
Providence, RI 02904
The Rhode Island Articles of Organization form will ask for specific information.
- LLC name
- Registered agent information
- LLC address
- LLC manager information
The fee in Rhode Island for filing the LLC Articles of Organization is $150.
Get a Rhode Island LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The IRS issues a 9-digit number known as an EIN for no additional cost. It acts as a Social Security Number for LLCs for income tax purposes.
In Rhode Island, you will need to apply for an EIN if converting a sole proprietorship into an LLC.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a Rhode Island LLC
Financial experts recommend opening a business bank account separate from your personal one. It will protect personal assets and credit scores.
In Rhode Island, banks will require you to submit a copy of the LLC’s Articles of Organization, operating agreement, and EIN before allowing you to do business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Rhode Island
Business attorneys in Rhode Island keep LLC formation on a simple track. Also, by retaining an attorney, you have someone available to handle future business-related issues.
Rhode Island business attorneys typically offer free consultations for first-time clients.
On average, a business lawyer in Rhode Island will cost $300 per hour.
LLC taxes in Rhode Island
- LLCs are considered pass-through entities in Rhode Island. As an LLC owner, you will file your personal taxes rather than the LLC’s tax returns.
- The Rhode Island state tax rate is 7.00%. The state has no max on local and county tax rates.
- You must register for a seller’s permit if you sell physical products in Rhode Island.
- Rhode Island imposes a $400 annual franchise tax on LLCs.
- If you hire LLC employees in Rhode Island, you must register for Unemployment Insurance Tax with the State of Rhode Island’s Taxation.
- You must also register for Employee Withholding Tax.
- By hiring a tax expert, you help ensure that you do not miss important deadlines, accrue late fees, or face possible dissolution.
Business licenses and permits in Rhode Island
The total cost for Rhode Island business licenses and permits will vary depending on where the company is located and the type of business.
You will use the State of Rhode Island Professional License Renewal website to locate the license and permits you will need for your business.
A business licence in Rhode Island varies between $50 to $400. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Local government agencies in Rhode Island will have different license processes and rules. You will want to contact the office to inquire about the process, price, and office hours.
You may find that some Rhode Island LLC formation documents will require a notarization from a notary public.
If you cannot locate one, most government agencies have one in the office.
According to Rhode Island law, a notary public can only charge a max of $25 per signature.
Employer obligations in Rhode Island
- If you hire employees in Rhode Island, you have specific obligations.
- According to federal law, all employers must verify that the business’s employees are eligible to work legally in the US using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- You will report all new hires to the State of Rhode Island New Hire Reporting Directory.
- You can find a complete list of Rhode Island employer obligations using the State of Rhode Island Department of Labor and Training.
Benefits of a Rhode Island LLC
- You simplify business banking when you form an LLC in Rhode Island. Banks will require that you open separate personal and business banking accounts. It protects future liability.
- LLCs and corporations have different compliance requirements. Incorporations must answer to shareholders and stock owners when they make business decisions.
- LLCs are pass-through entities in Rhode Island. Owners file personal tax returns rather than the LLC’s tax returns.
- You reduce the chances of double-taxation. C-corporations are double-taxed while LLCs are not.
- Rhode Island has state-specific incentives that are available to LLCs. Small Business Capital Investment Tax Incentives and Disabled Access Credit for Small Businesses are available to LLCs in the state.
How long does it take to register an LLC in Rhode Island?
It will take the State of Rhode Island 1 to 2 business days to process an online LLC registration. And, it will take 2 to 3 business days to process registrations by mail.
Rhode Island does not offer any expedited LLC services.
How do I dissolve my Rhode Island LLC?
You will want to dissolve an inactive LLC in Rhode Island to avoid ongoing costs and state fees. You will file your Articles of Dissolution online.
The cost for LLC cancellation in Rhode Island is $15.
Does Rhode Island have a publishing requirement?
States such as Nebraska and Arizona have significant publishing requirements. However, Rhode Island has no publishing requirements other than filing your annual report fee.
Do I need a business operating agreement for my LLC in Rhode Island?
The state of Rhode Island does not mandate that you submit a copy of your LLC’s operating agreement. However, having one in the company files is always a good idea to avoid future internal misunderstandings.
Most financial institutions in Rhode Island will require you to submit a copy of an LLC operating agreement.
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