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


Save time & be confident while starting your Rhode Island LLC; use best professional help -
#1 TOP PICK
 TailorBrands - ($49 + State Fees) Online Rhode Island LLC Setup
rhode island_state_seal

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

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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.

Forming an LLC in Rhode Island requires several costs. These fees include the annual report and state minimum business corporation taxes. Failure to file the annual report may result in penalties and even the revocation of your Certificate of Organization. Although these costs may seem minor, they are well worth the peace of mind that they provide. Here are some things you should consider before filing your first annual report. Listed below are the most common fees that you may have to pay.

The most common form that an LLC needs to file in Rhode Island is the Articles of Organization. This form officially records your LLC’s existence. Filing an Articles of Organization costs $150 online or $150 if you choose the paper form. While you will only pay this fee once, you will want to be sure to submit it on time. A resident agent service can help you stay compliant and avoid late fees.

Another common expense is the cost of a business license. The cost of a business license varies based on the business type, location, and activity. In Rhode Island, licensing costs are overseen by the Department of Revenue, which collects taxes on businesses and individuals. Additionally, every member of an LLC is required to pay State Income Tax on earnings. This tax is calculated at the time of filing personal income tax returns. The standard income tax rate in Rhode Island is 3.75%.

An operating agreement is another important part of an LLC. An operating agreement details the company’s rules and guidelines. Operating agreements can prevent disputes over ownership. The documents can be obtained from the Internal Revenue Service or through Incfile. Additionally, an EIN is required if the LLC has employees. If an LLC employs employees, an EIN is required by most banks. In addition to a state-issued tax ID, an LLC must obtain a Federal Tax Identification Number (EIN).

In Rhode Island, an LLC must designate one or more managers to oversee the company’s operations. This person can be a member of the company or a professional manager. The name of the LLC is recorded with the secretary of state corporation’s office, but some entrepreneurs prefer to maintain their privacy. Hiring a registered agent will prevent unwanted phone calls and mailings to their personal addresses. Creating an LLC in Rhode Island involves filling out paperwork called Articles of Organization. It can be filed either online or by mail.

Another expense that can be costly is liability insurance. In Rhode Island, liability insurance covers all LLC members and is required by law. Although the assets of LLC members are protected from business debt, they can still be seized and used to satisfy judgments for wrongdoing or negligence. In addition to liability insurance, an LLC must purchase Workers’ Compensation Insurance for its employees. This insurance will protect you from lawsuits and cover medical expenses.

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.

Leave a Comment