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.
On this page, you’ll learn about the following:
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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 | $299 + State Fees |
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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.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Rhode Island | $150 | $50 | 7% |
| Massachusetts | $125 | $85 | 6.35% |
| Connecticut | $520 | $500 | 6.25% |
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
- Rhode Island Name Reservation: $50 for online fillings or by mail
- Doing Business As (DBA): $50 for online filling or if filing by mail
- Certified Document Copies: $10 + $0.15 per page.
- Certified of Good Standing: $22 when filing online or $20 for by mail filing
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Rhode Island LLC: $50
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.
Running a business requires not only a dream but also dedication, hard work, and careful planning. For entrepreneurs considering opening a limited liability company (LLC), several factors should be taken into account, including the costs associated with maintaining it. In the state of Rhode Island, understanding these costs is vital for aspiring business owners to make informed decisions and allocate resources wisely.
One of the primary expenses an LLC owner in Rhode Island must be prepared for is the registration fee. When establishing an LLC, entrepreneurs are required to register their business with the state. While it’s essential to ensure this step is completed accurately, the costs to register an LLC in Rhode Island should be taken into consideration. Examining these fees, aspiring business owners can effectively plan their budgets and allocate funds accordingly.
Once an LLC is established, there are various annual and monthly expenses that must be managed. These costs are essential to ensure a legitimate and compliant business operation. For example, businesses should review taxation requirements and any related fees imposed by the state. Ensuring the LLC remains in compliance regarding taxes is critical to avoid penalties or potential legal issues. Therefore, entrepreneurs should set aside resources to fulfill their tax obligations to the state of Rhode Island.
While unforeseen circumstances may arise, careful budgeting can help LLC owners anticipate common expenses and form contingency plans. Insurance is a prime example of an essential expenditure that may not be immediately evident to entrepreneurs just starting their businesses. Consideration should be given to potential liabilities faced by the company, such as professional liability, product liability, or general liability. By researching and identifying suitable insurance options, LLC owners can protect their businesses and mitigate potential financial burdens.
Companies should also be prepared to cover annual filing and reporting fees required by the Rhode Island Secretary of State. Failure to submit these reports accordingly could lead to fines or penalties. Thus, maintaining a schedule and allocating funds to address these administrative costs is crucial for the success and continued legality of an LLC.
Additionally, accounting and bookkeeping expenses are frequently overlooked by entrepreneurs. Ongoing financial management is necessary for the prosperity of any business, regardless of its size. Employing a qualified accountant or using accounting software to maintain accurate financial records can prove invaluable in assuring the smooth operation and long-term sustainability of an LLC.
Furthermore, a budget should be allocated for professional services that may be needed throughout the lifetime of the LLC. These services may include legal advice, particularly when drafting or reviewing contracts or addressing potential legal disputes. Retaining legal counsel is essential for protecting the company’s interests and mitigating any possible liabilities.
In conclusion, maintaining an LLC in Rhode Island requires financial planning and strict adherence to state guidelines and requirements. While the costs outlined here are not exhaustive, they demonstrate the importance of considering expenses beyond the initial startup investment. By budgeting for fees associated with registration, taxation, insurance, reporting, financial management, and professional services, aspiring business owners can more effectively navigate the road to success and ensure their ventures remain stable and compliant.
Please note that the existing conclusion of the article briefly sums up the costs of maintaining an LLC in Rhode Island.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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.
