
If you have an LLC in Rhode Island and want to expand your business beyond Rhode Island, you must form a foreign LLC. Any business, especially a limited liability company, located in other states, starts its operation in Rhode Island, must file a foreign LLC in Rhode Island. To do so, every LLC needs to file additional filing documents, along with tax and relevant documents with the Rhode Island government.
In this article, you’ll be reading about how to start a foreign LLC in Rhode Island. Along with that, the page guides you through the steps involved in managing and maintaining a foreign LLC in Rhode Island after you form it.
Forming a Foreign LLC in Rhode Island
A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. If you register your LLC in one state and operate your business in Rhode Island, you probably need to register your LLC as a foreign entity here. Imagine, if your family owns a sushi restaurant in Alabama and you want to expand the chain somewhere in Texas, you must establish your restaurant in Texas as a foreign entity.
Anyone who has an active and in good standing LLC anywhere (except for Rhode Island) and wants to expand their operations in Rhode Island can file their LLC as a foreign entity. To start a foreign LLC in Rhode Island, you need to register it with the Rhode Island Secretary of State. Every state has a different rule for establishing a foreign LLC. Here are the steps to follow in Rhode Island for registering a foreign LLC.
Note: These are generic steps to file a foreign LLC in Rhode Island. Make sure to check with the State Secretary of State, before you start filing your business. – LLCBuddy Team
Step 1: Get the Certificate of Good Standing From Home State
Before you proceed to register your LLC in Rhode Island as a foreign entity, you must get the Certificate of Good Standing issued from your home state SOS. This is an important document to register an LLC in a foreign state.
If your LLC is originally registered in Rhode Island, then you must obtain the Certificate of Good Standing from Rhode Island Secretary of State. If your LLC is in other states, the name of the same document might be different. Every LLC, registered in any state other than Rhode Island must get this document to register a foreign LLC in Rhode Island.
Filing Certificate of Good Standing: In Rhode Island, obtaining the Certificate of Good Standing needs a few steps. You can order it online or offline. For the online filing, check the link mentioned and apply for the Good Standing Certificate.
Step 2: Choose Rhode Island Foreign LLC Name
Obtain a name reservation certificate and submit it with your foreign qualification requirements to the Rhode Island Secretary of State. Your LLC’s legal name outside of Rhode Island will be listed on the application, along with the name it will use in Rhode Island. Take note of the requirements for naming your LLC.
You can use the same name as your domestic LLC name, however, that name should be available in Rhode Island to use. Check name availability at Rhode Island’s business entity names and reserve your LLC name. There are a bunch of LLC naming guidelines in Rhode Island when it comes to forming a foreign LLC. Check the guidelines before you name your business.
Step 3: Select Rhode Island Foreign LLC Registered Agent
A registered agent is a person responsible for receiving all official and legal documents on behalf of your company, whether it is located domestically or in a foreign state. For a foreign LLC in Rhode Island, you must have a registered agent from Rhode Island only. No matter where your domestic LLC is located, you must hire a registered agent from Rhode Island for your foreign LLC.
You’ll need a registered agent to form a foreign LLC in Rhode Island and take note that the Rhode Island Resident Agent must have a local address. Here are the best LLC services on our list that will provide you with registered agents to ease your worries:
Step 4: File Application for Registration for Rhode Island Foreign LLC
The most important step is to send the application for registration with Rhode Island SOS. Download the PDF form from the Rhode Island Secretary of State website or file it online (whichever method is available). The form must be filled out with the following details:
- LLC’s full legal name.
- A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- DBA filing method in Rhode Island: two methods, by mail and in person.
- Online: There is no online filing available
- Offline: For filing offline in Rhode Island, you must send the accomplished DBA filing form to the Rhode Island Secretary of State, Business Services Division, 148 West River Street, Providence, RI 02904-2615 or drop it off in person at the same address.
- DBA filing fee in Rhode Island: $50
- LLC’s principal office and mailing addresses
- LLC formation state and date.
- Registered agent’s name and address in Rhode Island.
- Date when your LLC will start operations in Rhode Island.
- Credit card information is on the last page of the form for the application fee.
Online Filing
In Rhode Island, filing a foreign LLC online requires submission of an Online Foreign LLC Registration Form. Submit it online after filling it up with the information required. To pay the designated fees and final submission of the form, you might need to register with the SOS portal or log in (if you have already created an account). Read the instructions to file a foreign LLC to know what other documents you need.
Offline Filling
For offline filing of your foreign LLC in Rhode Island, you need to download and submit Foreign LLC Registration Form. The form must be typed and printed. Send the printed copy to the SOS office address at Division of Business Services, 148 W. River Street, Providence, RI 02904 by mail or in person. The fees should be paid by the checks (by mail) payable to the SOS or in cash, checks, and credit cards (in-person).
Foreign LLC Registration Fee in Rhode Island: To start an out-of-state (foreign) LLC in Rhode Island costs $150 for both online and offline filing. You must make the payment by using Credit cards or Debit cards for the online process. For the offline process, you can draft a check payable to the Rhode Island SOS. Also, there are other ways to make offline payments. Contact SOS for details about other payment methods.
The LLC cost in Rhode Island, even for foreign LLCs will differ between online filing and by mail. Also, read about what’s the major difference between Rhode Island’s domestic and foreign LLCs.
Step 5: Determine How Your Rhode Island Foreign LLC is taxed
Foreign LLCs are also subjected to the Rhode Island Business Privilege Tax and must file LLC annual reports each year. If you have a single-member foreign LLC then it will be considered as a ‘disregarded LLC’ by IRS. That means the LLC will not be regarded as a company but it will be taxed as an individual (the owner). If you already have an LLC in the home state, you must have obtained the EIN as well. You don’t need to obtain the EIN in Rhode Island for a foreign LLC separately as it is issued from the IRS.
For other types of LLCs (member-managed or manager-managed LLCs), it will be a ‘pass-through taxation‘ where the LLCs don’t get taxed separately, instead, the members and managers are taxed based on their personal income. So, foreign LLCs are taxed as same as domestic LLCs in Rhode Island. However, it is recommended to check with the Rhode Island Secretary of State for state-wise taxes.
Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.
Filing Rhode Island Foreign LLC Online – Quick Recap
- Get the Certificate of Good Standing from your home state where your LLC is originally registered
- Check if the name of your LLC is available in Rhode Island to use for your foreign LLC. If not, file DBA name with Rhode Island SOS.
- Get a registered agent in Rhode Island to represent your foreign LLC in Rhode Island. Recommended, professional help instead of being your own registered agent.
- File the Application of Foreign LLC with the Rhode Island Secretary of State following the mentioned method(s) above.
- Make the processing fee.
BOI Reporting
According to the Corporate Transparency Act, every LLC (or business) has to send a BOI reporting to the Financial Crimes Enforcement Network (FinCEN). Once you establish an LLC and if it is enlisted under the list of reporting companies, you must file your BOI report in Rhode Island with the FinCEN.
After Forming Rhode Island Foreign LLC
Here are added things you need to accomplish after forming your Rhode Island Foreign LLC
- Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search. You can contact the license office at Rhode Island Department of State.
- File LLC annual reports and Business Privilege Tax. You must file an Annual Report before the stipulated time frame after forming your LLC in Rhode Island. Here’s everything about Rhode Island LLC Annual Reports.
- Pay State Taxes like sales tax; you’ll need an EIN for your LLC.
FAQs
Also Read
- Alabama Foreign LLC
- Alaska Foreign LLC
- Arizona Foreign LLC
- Arkansas Foreign LLC
- California Foreign LLC
- Colorado Foreign LLC
- Connecticut Foreign LLC
- Delaware Foreign LLC
- DC Foreign LLC
- Florida Foreign LLC
- Georgia Foreign LLC
- Hawaii Foreign LLC
- Idaho Foreign LLC
- Illinois Foreign LLC
- Indiana Foreign LLC
- Iowa Foreign LLC
- Kansas Foreign LLC
- Kentucky Foreign LLC
- Louisiana Foreign LLC
- Maine Foreign LLC
- Maryland Foreign LLC
- Massachusetts Foreign LLC
- Michigan Foreign LLC
- Minnesota Foreign LLC
- Mississippi Foreign LLC
- Missouri Foreign LLC
- Montana Foreign LLC
- Nebraska Foreign LLC
- Nevada Foreign LLC
- New Hampshire Foreign LLC
- New Jersey Foreign LLC
- New Mexico Foreign LLC
- New York Foreign LLC
- North Carolina Foreign LLC
- North Dakota Foreign LLC
- Ohio Foreign LLC
- Oklahoma Foreign LLC
- Oregon Foreign LLC
- Pennsylvania Foreign LLC
- Rhode Island Foreign LLC
- South Carolina Foreign LLC
- South Dakota Foreign LLC
- Tennessee Foreign LLC
- Texas Foreign LLC
- Utah Foreign LLC
- Vermont Foreign LLC
- Virginia Foreign LLC
- Washington Foreign LLC
- West Virginia Foreign LLC
- Wisconsin Foreign LLC
- Wyoming Foreign LLC
In Conclusion
Having a foreign LLC in Rhode Island is nothing but expanding your business legally beyond the boundary of your domestic or home state. Starting a foreign LLC in Rhode Island does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. From getting the Certificate of Good Standing to hiring a registered agent in Rhode Island, a professional or attorney can always be a perfect help. ZenBusiness is one of the most accurate and user-friendly services that offer a bunch of LLC formation services. They offer LLC formation for $0 (excluding the state formation fee).
The cost of registering a foreign LLC in Rhode Island can vary depending on a range of factors. While the initial registration fees and ongoing expenses can be a significant investment, many companies find that the benefits of establishing a presence in the state outweigh the costs. By carefully considering the expenses involved and budgeting accordingly, companies can ensure that their foreign LLC in Rhode Island is a success.