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.
Ensuring you fulfill your legal obligations is never a cheap adventure, and setting up a Limited Liability Company (LLC) in Rhode Island comes with maintenance costs. Every business must meet business license requirements based on the municipality within which it is located. Going Public Rhode Island reported back in 2018 that “Rhode Island has five types of business taxes that annually work out to between $250 and $500, depending on the business structure.” So how much does it cost to maintain an LLC in Rhode Island, beyond state taxes and fees?
First, Rhode Island requires an annual report for LLCs which is the inclusion of data that already exists such as names of LLC managers or founders. Though small business starts fees are reasonable, with the fee for the filing of articles of organizations with the secretary of state sitting currently at a modest $150, It is recommended to have a state-licensed attorney or authorized service act as legal agents for service on the LLC once the company has been formed. They handle forward documentation, can accept legal correspondence sent on behalf of the business on time and in a professional manner, reducing legal and reputational risk. Of course, these services come with a cost.
Another necessary expenditure is hiring a certified public accountant (CPA) and bookkeeper, who have an excellent understanding of Rhode Island tax codes and instructions. Annual business registration and tax file endorsements add expense while also reducing any legal battles between the business and the state of residence. As with legal representation, it is worthwhile getting a certified and reliable service for your LLC records.
While many companies already offer low-budget bookkeeping and CPA plans, there are also workplace offerings that cost money even if it’s only a case of purchasing books and codes or contracting an online registration service. Budget for a minimum of $400-3500 yearly on such services, to be sure that your business is running legally. Companies with don’t succeed to get enough coverage or miss inclusive regulatory requirements can owe more in expenses and hurt function risk than they would leave pass when trying to establish ‘if lost.’
Finally, a business owner must bear in mind their level of home expertise when recording with Rhode Island law, or any market, they plan on operating within. With Rhode Island being the smallest state in the Union, even an aqueous error on a real estate insurance payment is vital in annual management fees.
Overall, small business owners within the state face regulatory burdens unique to their location, similar to anyone in their surrounding neighborhood within a comparable area. So it can be difficult to persevere the borderline while trying to budget for Maine-based business operations. Yet, there is no clearance or special savings: scheduling and acknowledging how frequent business releases with Rhode Island tax clouds indeed hold facilities can avoid costly harms. Take the time to meet regulatory requirements, consult with legal and professional service providers, and invest in sound business strategies for long-term success.
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.
