LLC Cost In Rhode Island - How Much To Pay In Fees & Taxes in RI
Rhode Island was ranked #45 on CNBC's 2022 Top States for Business. Despite its high real estate costs, the state has a well-developed technology infrastructure. It's also a great place for starting a tourism business.
Researching how to start an LLC in Rhode Island is worthwhile in order to generally assess the regulatory costs of your business formation. For example, if you plan to hire employees, you need to know the state laws and payroll taxes.
How Much Does an LLC Cost in Rhode Island?
If you are opening an LLC for the first time, it is advisable to use the assistance of the best LLC services in 2023. All costs for registering and maintaining a business are divided into mandatory and additional.
The minimum list of mandatory costs in Rhode Island includes:
- Articles of Organization. Used to register an LLC at the state level. It establishes the rights, duties, and powers of LLC members;
- A registered agent. A person or service that receives regulatory and tax notices and other types of documents on your behalf;
- Annual tax return. An LLC in Rhode Island has a different filing deadline than corporations and cooperatives;
- Minimum corporate tax or MCIT. Calculated based on total gross income and multiplied by the applicable MCIT rate.
| Service | Cost |
|---|---|
| State filing fee | $150 |
| Foreign LLC filing fee | $150 |
| Annual report | $50 + $2.50 enhanced access online fee |
| Registered agent change fee | $49 |
| Name reservation | $50 |
| Trade name | $50 |
| Certificate of Good Standing | $22 |
| Certified document copies | $10 plus $0.15 per page |
| LLC dissolution rate | $49 + state fees |
For licensed businesses, specific activity fees are added to the mandatory LLC fees in Rhode Island. The business assistant of the Secretary of State's office is recommended for this purpose.
If you are looking for the cheapest way to start an LLC in Rhode Island, it is essential to consider not only the basic costs but also the additional expenses.
Rhode Island LLC Online Filing Fee: $150
First and foremost, you will have to pay $150 for obtaining a Certificate of Formation (Articles of Organization).
Your Certificate of Formation will contain the following information:
- LLC name;
- Date of LLC registration;
- Name and address of the registered agent;
- Address where the company's office is located;
- Business purpose;
- Duration of the business;
- Name and address of at least one LLC member.
The document is authenticated by the signature of the LLC organizer. Rhode Island does not have strict statewide basic business license requirements.
To file the Articles of Organization for a Domestic Limited Liability Company, you will need to download, print, and fill out the form.
Annual LLC Fee Rhode Island: Annual Report: $50 + $2.50 Enhanced Access Online Fee
The annual LLC tax report should be filed between February 1 and May 1. This can be done in person or by mail. The Secretary of State's office is located at:
148 W. River Street, Providence,
RI 02904.
To file the annual report online, use a simple one-page form. For that, you will need to log in and enter basic information about your business.
The state of Rhode Island has a penalty for late filing of the annual report. For LLCs, the penalty is $25.
Registered Agent (Agent of Process, Resident Agent) Fee: $49
In Rhode Island, a registered agent is not only an individual or company that accepts legal mail on behalf of an LLC. Additionally, they can act as a general point of contact for business notices.
Requirements for a registered agent in Rhode Island are:
- An individual who is of legal age and has a permanent address within the state;
- An entity registered in the state and offers the services of a registered agent;
- 9 a.m. to 5 p.m. business hours.
If you choose to contact a commercial registered agent, the cost is approximately $100-$300 per year.
LLC Business Enterprise Tax: $400
In the state of Rhode Island, the enterprise tax is 7% with a minimum of $400. The rate does not change depending on how many days a year the company had actual business.
Note that an LLC is required to pay enterprise tax whether or not there is actual business activity. You also have to pay the minimum tax even if there is no profit.
Cost to Form a Foreign LLC in Rhode Island: $150
The list of required Rhode Island LLC fees for foreign companies includes more than just the initial fee.
It includes:
- Annual tax report: $50;
- Minimum corporate tax: $400.
As with other state-registered LLCs, if the business is engaged in licensed activities, the total cost includes the appropriate fees.
Cost to Form a Low-Profit LLC in Rhode Island: $150
To form a Low-Profit LLC, you will also need to file Articles of Organization with the Secretary of State. To do this, you have to download, print, and fill out the form for a Domestic Low-Profit Limited Liability Company.
You can pay the filing fee in person at the Department of State by check, cash, or credit card.
Cost to Form a PLLC (Professional LLC) in Rhode Island: $150 + License Fee
You have to form a PLLC if your company is in an industry requiring licensing. Check the complete list of the business types on the Department of Business Regulation website.
In some cities, such as Providence, you will need a local permit or license to open an LLC.
Business License Renewal Fee: $15
In Rhode Island, the main business license is a sales tax permit. You need this permit if:
- You are doing business in the state;
- You plan to sell/rent personal property or sell any goods at retail.
To obtain this permit, you have to visit the Division of Taxation in the Secretary of State's office.
Other LLC Filing Costs
To calculate how much is an LLC in Rhode Island, you need to consider not only the basic costs but also the ancillary expenses. The list of fees is different for each business, depending on the type of activity.
LLC Name Reservation: $50
In some cases, it may be necessary to reserve the name of an LLC in advance. You can do this online for $50, but it is not part of the mandatory Rhode Island LLC cost.
You can reserve a business name for 120 days. Before doing so, check to see if a business name is available. You can do this at the RI Department of State Corporate Database.
But it's critical to remember that reserving a name in Rhode Island does not protect your LLC name in other states.
"Doing Business As (DBA) Name: $50
In the state of Rhode Island, all companies operating under a name that differs from the legal name register a DBA. A database operator service can help make things easier.
This can be done in person or online. You will need to provide the legal name of the business, a facility identification number, date and place of registration.
DBA is registered once, so you do not need to reapply.
Certified Document Copies: $10 Plus $0.15 per Page
Certified Document Copies are issued by the Rhode Island Department of State's Division of Business Services. You can order them in 3 ways:
- In person. Visit the Division of Business Services, 148 West River Street, Providence, RI 02904;
- By mail. A request should be sent to the Business Services Division, 148 W. River St. Providence, RI 02904-2615. Processing time is 5 to 7 business days;
- By phone. You can submit a request to the Business Services Division by calling 401-222-3040.
Hours of operation are 8:30 a.m. to 4:30 p.m., Monday through Friday. The type of payment depends on how you apply.
Certificate of Good Standing (Existence, Status, Legal Existence, Certificate of Fact): $22
The Rhode Island Certificate of Good Standing is proof that the company has met all tax obligations. You can apply in several ways: in person, by mail, by phone, or online.
To apply online, you have to:
- Go to Corporate Database to find the type of business;
- Click on the Certificate request field at the top of the screen;
- In the menu, select the desired certificate type and click Add.
- Fill in the contact information.
Submit your order. After that, be sure to print and save your payment receipt.
Certificate of Compliance: $40
To obtain a Certificate of Compliance from the State of Rhode Island, download the State of Rhode Island Certificate of Compliance request form from the Secretary of State’s website.
Notice of Trademark: $50
The State of Rhode Island allows you to register a trademark or service mark if needed. Before you apply, choose the type of mark you want. Next, make 3 identical samples of the mark on 8 ½ x 11-inch paper.
Next, fill out the Application for the Registration of a Trademark or the Application for the Registration of a Service Mark. These must be printed, filled out, and submitted to the Secretary of State's Office either in person or by mail.
To confirm the filing of a Trademark, you should:
- Go to the Trademark/Service Mark Database;
- Enter the trademark ID or name and click "Search";
- Click on the link with the original number, scroll down the page, and click on the image.
If the result is negative, you can find it in the Rejected Filings Viewer.