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

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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.

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

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.

When you form an LLC in Rhode Island, you’ll need to pay one-time fees and recurring annual fees. Annual reports are necessary to keep your business in good standing. The Rhode Island Department of State requires LLCs to file these reports each year. Filing them correctly can save you time and money. You’ll also need to check the availability of the name you’ve selected. These fees vary by location.

To form an LLC in Rhode Island, you need to file Articles of Organization, or the necessary paperwork. These documents set forth basic information about the LLC. These documents must be filed with the Rhode Island Secretary of State. You can file these documents online or mail them. In Rhode Island, an LLC can be taxed as a corporation or partnership, depending on how it’s organized. The Articles of Organization can be a general statement of the LLC’s objectives.

In addition to the initial fees, business licenses are required. The cost of these licenses varies depending on the type of business and location. Regulatory boards such as the Rhode Island Department of Revenue oversee licensing requirements. Finally, every LLC member is liable for State Income Tax. The tax is calculated on the amount of income earned by each member. The standard rate is between 3.75% and 5.99%.

To register an LLC in Rhode Island, you must choose a name for your business and designate one or more managers. Managers of an LLC may be members, professionals, or an outside entity. RI’s secretary of state corporation office keeps records of the name of LLCs. You can file these documents online or through the mail. You can also hire an attorney to help you establish and file annual reports.

While LLCs in Rhode Island aren’t required to file operating agreements, this is still a necessary part of any business. Operating agreements contain important details on member duties and rights. Operating agreements should be filed with the Department of State to prevent disputes over ownership and financial agreements. If you fail to file an operating agreement, your existing documents will serve as the operating agreement. The costs of registering an LLC in Rhode Island vary based on your specific needs.

An annual report is another requirement for most business entities in Rhode Islands. LLCs in the state must file an annual report to prove that they’re in good standing. A resident agent service can help you stay up-to-date on these deadlines and avoid late fees. And, an attorney can help you establish a business plan if your company is growing quickly and needs to hire a legal professional.

The annual reports are required for all LLCs in Rhode Island, as well as foreign LLCs doing business in the state. You can file this report online or through the mail. To register for an LLC in Rhode Island, you can go to the Department of State’s website. You will also need to register with the Division of Taxation. You can start your registration online, but you may need to file additional paperwork by mail.

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.

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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