How Much Is an LLC in Rhode Island?
Rhode Island LLC Filing Fee: $150
To form an LLC in Rhode Island, you'll need to file the Articles of Organization (Form 400) with the Rhode Island Department of State. The Department of State charges a $150 fee to process and record this document online, by mail, or in person.
Resident Agent Fee
Every Rhode Island LLC must appoint a resident agent, known as a registered agent in most states. Your Rhode Island resident agent must be a resident of Rhode Island and must be available to receive service of process during normal business hours at a designated street address.
You can be your own resident agent in Rhode Island, or you can use a registered agent service for a minimal cost.
Recommended: Get free registered agent services for one year when you form an LLC with Northwest ($39 plus state fees).
Rhode Island Annual Report Fee: $50
Rhode Island requires LLCs to file an annual report with the Department of State each year and pay a $50 filing fee.
Minimum Corporate Tax: $400+
All Rhode Island LLCs are required to pay corporate tax to the Rhode Island Division of Taxation.
The corporate tax rate is 7% of your LLC’s taxable income, with a minimum amount of $400 having to be paid each year. Keep in mind that this will be owed regardless of how long you operated for in a year.
Cost to Form a Foreign LLC in Rhode Island: $150
LLCs registered in another state that want to expand into the state of Rhode Island must register as a foreign LLC in Rhode Island.
The cost for registering a Rhode Island foreign LLC is $150. You can register a foreign LLC in Rhode Island by filing an Application for Registration for a Foreign Limited Liability Company (Form 450) and paying the $150 filing fee.
Business Licenses and Permits
Your business might need federal, state, and local permits/licenses to legally operate in Rhode Island, depending on your industry and geographical location. This is true whether you form an LLC or any other type of business structure.
Learn more about state and local licensing in our Rhode Island business license guide.
Other Rhode Island Business Filing Fees
There are fees associated with other, optional business filings in Rhode Island.
LLC Name Reservation
You can reserve a business name for your LLC for up to 120 days by filing an Application for Reservation of Entity Name with the Rhode Island Department of State and paying the $50 fee.
‘Doing Business As’ (DBA) Name
When an LLC is registered with the state, the LLC’s name is also officially registered. Some business owners choose to also file for a DBA name, known as a fictitious business name in Rhode Island.
You can file a Fictitious Business Name Statement (Form 624B) with the Rhode Island Department of State and pay the $50 filing fee to create a name other than your legal LLC business name.
Learn more in our Rhode Island DBA guide.
Certified Document Copies
You can get certified copies of your Rhode Island business documents by ordering through the Secretary of State and paying $10 plus $0.15 per page.
Certificate of Good Standing
You can obtain a Rhode Island Certificate of Good Standing by ordering it through the Department of State and paying the $20 fee. For online filings, an additional $2 fee needs to be paid.
A Certificate of Good Standing is often required by banks and lenders.
How to Start an LLC in Rhode Island
Forming an LLC yourself is easy; just follow the five steps below.
Five Basic Steps to Start an LLC in Rhode Island
Step 1: Name Your Rhode Island LLC
Step 2: Choose a Resident Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 1: Name Your Rhode Island LLC
When you name your Rhode Island LLC, you’ll need to choose a name that:
- Is available for use in the state of Rhode Island
- Meets Rhode Island’s naming requirements
- Is available as a web domain
Check web domain (URL) availability with GoDaddy:
Find a Domain Now
Not sure what to name your business? Check out our free LLC name generator.
Step 2: Choose a Resident Agent
Rhode Island LLCs are required to appoint a resident agent to receive service of process.
Business owners can hire a resident agent service or appoint any Rhode Island resident that is 18 years or older and is available during normal business hours at a specified address to receive service of process.
Recommended: Northwest offers one full year of registered agent services with their $39 (plus state fees) LLC formation package.
Step 3: File Rhode Island Articles of Organization
To form an LLC in Rhode Island, you must file the Articles of Organization with the Department of State. This can be done online through Rhode Island’s Business Services Online Filing System or by filing Form 400 by mail or in person.
For a closer look at the filing process, check out our Rhode Island Articles of Organization guide.
Step 4: Create an LLC Operating Agreement
Operating agreements are not required for Rhode Island LLCs, but it’s a good practice to have one.
An operating agreement outlines the ownership and operating procedures of an LLC, ensuring that all members are on the same page and reducing the risk of conflict down the line.
Learn more in our Rhode Island LLC Operating Agreement guide.
Step 5: Get an EIN
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. Think of an EIN as a Social Security number for your LLC.
To learn how to get an EIN for free, visit our How to Get an EIN Number guide.
Rhode Island Business Resources
LLC Cost in Rhode Island FAQ
What is the cheapest way to start an LLC in Rhode Island?
The cheapest way to start an LLC in Rhode Island is to handle the registration process individually. In order to do this, you will need to follow these steps:
- Name your LLC
- Choose a resident agent: This can be a registered agent service or an individual.
- File the Rhode Island Articles of Organization: The filing fee for this is $150 and can be done online, by mail, or in person.
- Create an LLC operating agreement: This is usually not a legal requirement, but it is highly recommended.
- Get an EIN: This is basically your business’s Social Security number (SSN).
How much does an LLC cost per year in Rhode Island?
All Rhode Island LLCs are required to file an annual report and pay a $50 filing fee.
Plus, there is a minimum corporate tax of $400 per year that needs to be paid for an LLC to maintain its status in Rhode Island.
For a more in-depth analysis, see our How Much Does an LLC Cost? article.
How much does an LLC license cost in Rhode Island?
An LLC is not a business license, but a business entity. Forming an LLC in Rhode Island costs $150. There is also an annual report fee of $50.
You may be required to pay additional fees if you choose to pay for a registered agent service, an LLC formation service, or an LLC attorney.
Your LLC will also be required to pay corporate tax in order to operate legitimately in the state of Rhode Island. The corporate tax rate in Rhode Island is 7%. Keep in mind that a minimum amount of $400 per year needs to be paid.
See our How to Start an LLC in Rhode Island for more information on registering your business as an LLC.
Do LLCs pay taxes in Rhode Island?
Yes, LLCs are a “pass-through” tax entity. This means that the LLCs profits are “passed through” directly to its owner(s), who then pay income taxes independently.
This is advantageous compared to a corporation’s tax structure because it means that LLC members are not taxed twice.
Having said that, readers should keep in mind that LLCs are very flexible when it comes to how they can be taxed, and — depending on the specifics — they can choose to be taxed as a pass-through entity, a C corp, and an S corp.
For more information, see our How Is an LLC Taxed guide.
What are the tax benefits of an LLC?
The tax benefits of an LLC will depend on how you choose to be taxed, as well as on whether you are operating as a single or multi-member LLC.
Generally speaking, LLCs can choose to be taxed in several different ways, including:
- As a sole proprietorship or general partnership
- As a C corporation
- As an S corporation
See our Single-Member LLC Taxes guide for a detailed overview of the tax benefits of having an LLC as a small business.
Do I need to open a business bank account for my LLC?
Even though you do not necessarily “need” to open a bank account for your LLC, this is generally highly recommended for several reasons.
For one, having a separate bank account can allow you to maintain your LLC’s corporate veil — meaning that you will not risk losing your limited personal liability under the law. A business bank account also offers financial benefits, including the ability to build business credit more quickly and access to larger business loans.
Interested in opening a business bank account? See our review of the best banks for startups in 2022.