LLC Cost in Rhode Island – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Perhaps you are hoping to form a Rhode Island LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Rhode Island.

Rhode Island LLC Cost of Filing

Here are the costs involved in forming an LLC in Rhode Island.

Cost of Filing Formation Certificates

The Rhode Island Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Rhode Island Secretary of State.

Rhode Island Domestic LLC

  • Online Filing costs $150.
  • Annual Report filing costs $50
  • Name Reservation fee costs $50
  • By Mail: Fill out the application form, and send it to Division of Business Services 148 W. River Street Providence, RI 02904. Costs $150.

Rhode Island Foreign LLC

  • Online Filing costs $150.
  • Annual Report filing costs $50
  • Name Reservation fee costs $50
  • By Mail: Fill out the application form, and send it to Division of Business Services 148 W. River Street Providence, RI 02904. Costs $150.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Rhode Island LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Rhode Island, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Rhode Island Department of Revenue for regulatory boards or agencies requiring licensing.

Taxes payable to the Rhode Island Department of Revenue

This article is your ultimate guide to the several taxes that an LLC has to pay in Rhode Island. Read on to know the taxes levied by the state & federal governments in Rhode Island. The state and federal taxes to be paid to the Rhode Island Department of Revenue are :

State Income Tax

Every member of the LLC formed in Rhode Island is liable for the State Income Tax. This tax is charged on the amount a person earns himself through the LLC. Usually, this tax is calculated while filing personal income tax returns. Rhode Island’s standard income tax rate ranges from 3.75% to 5.99%, depending on a person’s income.

State Sales & Use Tax

The current state sales & use tax rate on LLC in Rhode Island is 7%. However, the tax rate changes as per the region or city in which the LLC is formed. Every LLC that sells tangible items or is a service provider, has to collect this type of tax & then pay it to the Rhode Island Department of Revenue.

Federal Self-Employment Tax

Like the State tax, every person earning money from the LLC has to pay this type of tax. It is sometimes called Social Security or Medicare tax. The Federal self-employment tax rate in Rhode Island is 15.3 percent.

Federal Income Tax

The Federal Income Tax is levied on the LLC, depending on the earnings of the LLC, the tax bracket applicable to such earnings, & the manner of filing. This Tax is levied on all the profits earned by the company.

Employee & Employer Taxes

An LLC with several employees drawing monthly salaries has to also pay Employee-Employer taxes, in addition to the taxes mentioned above. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.

Cost Comparison between states

Rhode Island shares its borders with two states, namely, Massachusetts & Connecticut. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Rhode Island$150$507%
Massachusetts$125$856.35%
Connecticut$520$5006.25%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Rhode Island.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

How Much Does It Cost to Maintain an LLC in Rhode Island

To maintain an LLC in Rhode Island you will need to pay an annual fee of $50 along with state income tax at 3.75% to 5.99%, sales & use tax at 7% and federal taxes.

One of the essential ongoing costs for an LLC in Rhode Island is the annual report filing fee. Each year, LLCs are required to file an annual report with the Rhode Island Secretary of State’s office and pay a fee to remain in good standing. Failure to file this report can result in penalties, late fees, and even administrative dissolution of your business. It’s essential to factor in this recurring expense when budgeting for your LLC’s operational costs.

In addition to the annual report filing fee, businesses operating as an LLC in Rhode Island are also required to pay state taxes. Depending on the nature of your business and the level of revenue generated, the amount of state tax you owe can vary. It’s vital to consult with a tax professional to ensure you are compliant with all tax requirements and to avoid costly penalties for non-compliance.

Another often overlooked cost for maintaining an LLC in Rhode Island is the cost of obtaining and renewing business licenses and permits. Depending on the industry in which your business operates, you may need to obtain various licenses and permits to legally operate in the state. The fees associated with these licenses and permits can vary depending on the type and location of your business. It’s crucial to research and understand all licensing requirements to avoid potential fines or legal issues.

Additionally, ongoing costs such as insurance premiums, professional fees (such as legal or accounting services), and employee wages can also impact the financial health of your LLC. These expenses are essential for ensuring the smooth operation and growth of your business but can add up quickly if not properly managed.

For business owners looking to minimize the costs associated with maintaining an LLC in Rhode Island, there are several strategies that can help. In addition to budgeting and planning for recurring expenses, exploring cost-saving measures such as bundling services or negotiating discounts with vendors can help reduce operational costs. Additionally, staying informed about changes to state regulations and tax laws can help you proactively manage your LLC’s financial obligations.

Ultimately, understanding the ongoing costs of maintaining an LLC in Rhode Island is essential for any business owner looking to establish and run a successful business. By staying informed, budgeting appropriately, and exploring cost-saving measures, you can ensure the financial health and longevity of your LLC for years to come.

In Conclusion

The cost of Rhode Island is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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