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.

Depending on the nature of your business, you may need to apply for a Rhode Island limited liability company license. If your business is operating in certain industries, you may also need to obtain a state business license. When forming an LLC, it is important to know how much it will cost to maintain your business. This includes federal and state taxes, as well as business licenses. You should also consider the break even point of your business.

Rhode Island requires all LLCs to file an annual report with the Department of State. You can file this report online or by mail. The report is due between September 1 and November 1. This report includes basic information about your business, such as your registered agent’s name and address. You can also file your report on paper if you prefer. The fee for filing an annual report is $50.

Rhode Island requires LLCs that operate as service providers to collect sales and use taxes. The rate varies by region. A service provider must also register with the Division of Taxation. A service provider that sells tangible personal property must also register with the Division of Taxation.

You may also have to pay the Division of Taxation for a tax ID number. The IRS provides an EIN, or Employee Identification Number, for LLCs to help them track their tax reporting. You can obtain an EIN for free on the IRS website. An EIN is like your social security number for your LLC. You can also file for an EIN online or by mail.

There is also a sales and use tax for every LLC that sells tangible personal property. This tax rate varies by city. It is usually calculated when you file your personal income tax returns.

Rhode Island also requires that every member of your LLC pay self-employment tax, sometimes called the Social Security tax. The tax rate is 15.3 percent. Every member of your LLC will also have to pay State Income Tax on the profits they make from your LLC. Usually, the State Income Tax will be calculated when you file your personal income tax returns.

If you’re planning to register a Rhode Island LLC, you’ll need to appoint a registered agent. The registered agent’s name and address will become public record. This agent is responsible for receiving official business papers and for filing them with the Department of State. A registered agent’s name and address will also appear on the Articles of Organization.

Rhode Island also requires that all LLCs register with the Division of Taxation. A business license is renewed annually. The cost of renewing your business license depends on the type of business you operate. You can pay a small fee to renew your license online or by mail. You may also need to pay a fee to register your LLC as a service provider.

When forming an LLC, you’ll need to choose a name that is unique. You can reserve your name for 120 days. A business name reservation requires a $50 filing fee with the Department of State.

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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