LLC Cost in Rhode Island | How Much Does It Cost to Start an LLC


Steve Bennett
Steve Bennett
Business Formation Expert
Hi there, I'm Steve. My mission is to empower the next generation of online entrepreneurs with the knowledge and tools they need to succeed. My business insights are based on real-world experience, ensuring that aspiring entrepreneurs can confidently start and run their own businesses.

All Posts by Steve Bennett →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
WebinarCare offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
WebinarCare is led by Steve Bennett, a seasoned expert in the business world. He's gathered a team that's passionate about giving you reliable advice on everything from starting a business to picking the right tools. We base our tips and guides on real-life experience, ensuring you get straightforward and proven advice. Our goal is to make your business journey smoother and more successful. When you choose WebinarCare, you're choosing a trustworthy guide for all things business.
LLC Costs in Rhode Island

Forming a Limited Liability Company (LLC) in Rhode Island is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Rhode Island.

If you would like to know more about the Rhode Island LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Rhode Island. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Rhode Island, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Resident Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Rhode Island:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Rhode Island is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Resident Agent
    A Resident Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Resident Agent must have a physical address in Rhode Island and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Rhode Island Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Resident Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Rhode Island. Although not required by Rhode Island law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Rhode Island and apply for business licenses in Rhode Island related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Rhode Island through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Rhode Island, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Rhode Island.

Remember, starting an LLC in Rhode Island involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Rhode Island that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Rhode Island

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Rhode Island can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Rhode Island business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Resident Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Rhode Island is to file the Rhode Island Articles of Organization with the Rhode Island Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Resident Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Resident Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $150. You can also file by mailing it to Rhode Island Secretary of State, which is located at Division of Business Services, 148 W. River Street, Providence, RI 02904.

Recommended: Filing formation papers is easy and hassle-free if you hire a professional service. We recommend using –

LegalZoom ($0 + State Fee)

Resident Agent Fee

An LLC in Rhode Island must designate a Resident Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Resident Agent or appoint someone you know. Professional Resident Agent in Rhode Island typically charge an annual fee ranging from $50 – $150.

In Rhode Island, your Resident Agent must:

  • Be a resident of Rhode Island or a business entity authorized to do business in the state.
  • Have a physical address in Rhode Island (P.O. boxes are not acceptable)

Choosing a reliable and responsible Resident Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Rhode Island and provided features as an add-on with their packages for you to check out.

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$299 Per Year

  • Free LLC Formation

  • RA service in all states

  • Legal consultation

$125 Per Year

  • Flat price for RA service

  • LLC formation package

  • Fast service

Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Rhode Island Secretary of State.

In Rhode Island, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the Rhode Island Secretary of State to keep the name.

The online name reservation fee is disclosed, while the mail name reservation fee is $50. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in two methods, by mail, and in person. However, before filing Rhode Island DBA, you should know that you need to renew your DBA, which cost $50.

Recommended: Embark on your entrepreneurial journey confidently and affordably with LegalZoom’s DBA service, the beacon that guides businesses to credible branding and comprehensive compliance. Discover how effortless success can truly be!

LegalZoom ($99 + Filling Fees)

Ongoing LLC Costs

After you know the initial costs of forming an LLC in Rhode Island, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the Rhode Island Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Resident Agent.

In Rhode Island, the Annual Report fee costs $50 which can be paid every 1 year.

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by Rhode Island on businesses, including LLCs and Rhode Island Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Rhode Island’s specific tax regulations.

Rhode Island LLC Taxes To Be Paid

The State of Rhode Island is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Rhode Island, the sales tax rate is 7.00%.
  • State Income Tax: Considering other taxes in Rhode Island, you should pay for the state income tax, with a rate of 7.00%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 1.53% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Rhode Island business and the location of your operations, you may need to obtain permits and business licenses in Rhode Island. The costs of these licenses and permits will vary based on your specific business and location. In Rhode Island, the business license ranges from $50 – $300. However, research the requirements for your LLC in Rhode Island and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Rhode Island. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Rhode Island LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Rhode Island that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Rhode Island offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Resident Agent if permitted within Rhode Island. It allows the business owner to serve as the Resident Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost for forming an LLC in Rhode Island?
The filing fee for forming an LLC in Rhode Island is $150.
Is there a fee for using a registered agent in Rhode Island?
Yes, there is an annual fee of $50 for using a registered agent in Rhode Island.
What is the cost to file annual reports for an LLC in Rhode Island?
The annual report filing fee for an LLC in Rhode Island is $50.
Are there any other fees I should be aware of when forming an LLC in Rhode Island?
Yes, you may need to pay a fee for reserving your LLC name and another fee for expedited processing.
How much does it cost to reserve an LLC name in Rhode Island?
It costs $50 to reserve an LLC name in Rhode Island.
What is the fee for expedited processing for an LLC formation in Rhode Island?
The fee for expedited processing for an LLC formation in Rhode Island is $50.
Are there any additional state or local fees for registering an LLC in Rhode Island?
There may be additional fees depending on the nature of your business. You should check with your local government.
Does Rhode Island charge a franchise tax for LLCs?
Yes, Rhode Island charges a franchise tax for LLCs that is calculated based on the LLC’s net annual income.
What is the average franchise tax for an LLC in Rhode Island?
The average franchise tax for an LLC in Rhode Island varies based on the LLC’s net income. You can use the Rhode Island Division of Taxation’s online calculator to determine your specific tax liability.
Do I need to hire a lawyer to form an LLC in Rhode Island?
No, you don’t need to hire a lawyer to form an LLC in Rhode Island, but it’s generally a good idea to consult with one.
What is the difference between an LLC and a corporation in Rhode Island?
Both LLCs and corporations can limit personal liability, but LLCs generally have more flexibility in terms of taxation and ownership structure.
Can I form a single-member LLC in Rhode Island?
Yes, Rhode Island allows for single-member LLCs.
What are the advantages of forming an LLC in Rhode Island?
Advantages of forming an LLC in Rhode Island include flexibility in ownership and management structure, limited personal liability, and flexibility in tax treatment.
Can foreign entities register an LLC in Rhode Island?
Yes, foreign entities can register an LLC in Rhode Island.
How long does it take to form an LLC in Rhode Island?
It typically takes 5-7 business days to form an LLC in Rhode Island.
What is an operating agreement for an LLC in Rhode Island?
An operating agreement is a legal document that outlines an LLC’s rules, regulations, and ownership structure.
Is an operating agreement required to form an LLC in Rhode Island?
No, an operating agreement is not required to form an LLC in Rhode Island, but it is highly recommended.
Can I change the ownership structure of my LLC after it is formed in Rhode Island?
Yes, you can change the ownership structure of your LLC after it is formed in Rhode Island.
What is a registered agent for an LLC in Rhode Island?
A registered agent is a person or company that is appointed to receive legal documents on behalf of an LLC.
Do I need a registered agent for my LLC in Rhode Island?
Yes, LLCs in Rhode Island are required to have a registered agent.
Can I change my registered agent for my LLC in Rhode Island?
Yes, you can change your registered agent for your LLC in Rhode Island at any time.
Are there any residency or citizenship requirements to form an LLC in Rhode Island?
No, there are no residency or citizenship requirements to form an LLC in Rhode Island.
Can I transfer my LLC from another state to Rhode Island?
Yes, you can transfer your LLC from another state to Rhode Island.
Can I dissolve my LLC in Rhode Island?
Yes, you can dissolve your LLC in Rhode Island.
What is the fee to dissolve an LLC in Rhode Island?
The fee to dissolve an LLC in Rhode Island is $10.
What happens to my LLC if I don’t file my annual report in Rhode Island?
If you don’t file your annual report in Rhode Island, your LLC may be administratively dissolved.
How often do I need to file an annual report for my LLC in Rhode Island?
You need to file an annual report for your LLC in Rhode Island every year.
What information is required in an annual report for an LLC in Rhode Island?
An annual report for an LLC in Rhode Island requires basic information such as contact information for the LLC, its registered agent, and the names of its managers or members.
Can I file my annual report for my LLC in Rhode Island online?
Yes, you can file your annual report for your LLC in Rhode Island online.
What is the cost to form an LLC in Rhode Island?
The cost to form an LLC in Rhode Island is $150.
Is it necessary to hire an attorney to form an LLC in Rhode Island?
No, you can form an LLC in Rhode Island without hiring an attorney.
Do I need to have a registered agent to form an LLC in Rhode Island?
Yes, you must have a registered agent in Rhode Island.
How much does a registered agent cost in Rhode Island?
The cost of a registered agent varies, but on average it is about $100-$300 annually.
Can I be my LLC’s registered agent in Rhode Island?
Yes, you can be your LLC’s registered agent in Rhode Island.
What is the annual LLC fee in Rhode Island?
The annual LLC fee in Rhode Island is $50.
When is the annual LLC fee due in Rhode Island?
The annual LLC fee is due on the last day of your LLC’s anniversary month.
Are there any other ongoing costs associated with owning an LLC in Rhode Island?
Yes, there is an ongoing business entity tax, which ranges from $400 to $500 annually.
Do LLCs in Rhode Island have to file an annual report?
Yes, LLCs in Rhode Island have to file an annual report with the Secretary of State.
When is the annual report due for LLCs in Rhode Island?
The annual report is due by November 1st each year for current LLCs.
How much does it cost to file an annual report for an LLC in Rhode Island?
The cost to file an annual report for an LLC in Rhode Island is $50.
Can I file my LLC’s annual report online in Rhode Island?
Yes, you can file your LLC’s annual report online in Rhode Island.
Can I change my registered agent in Rhode Island?
Yes, you can change your registered agent in Rhode Island at any time.
How much does it cost to file an amendment for an LLC in Rhode Island?
It costs $50 to file an amendment for an LLC in Rhode Island.
What is an LLC operating agreement in Rhode Island?
An LLC operating agreement in Rhode Island is a legal document that outlines how the LLC will be managed.
Is an LLC operating agreement required in Rhode Island?
No, an LLC operating agreement is not required in Rhode Island, but it is recommended.
Can I use an online legal service to form my LLC in Rhode Island?
Yes, you can use an online legal service to form your LLC in Rhode Island.
Are LLCs taxed in Rhode Island?
No, LLCs in Rhode Island are not taxed on their income.
Do LLC owners pay personal income tax in Rhode Island?
Yes, LLC owners pay personal income tax in Rhode Island.
What is the Rhode Island personal income tax rate for LLC owners?
The Rhode Island personal income tax rate for LLC owners is between 3.75% to 5.99%.
Do LLC owners in Rhode Island have to pay quarterly estimated taxes?
Yes, LLC owners in Rhode Island have to pay quarterly estimated taxes.
Can I get a tax ID number for my LLC in Rhode Island?
Yes, you can get a tax ID number for your LLC in Rhode Island by applying online with the IRS.
Can I apply for RI business licenses and permits online?
Yes, many RI business licenses and permits can be applied for online.
Is there a state business license in Rhode Island?
No, there is not a state business license in Rhode Island, but there may be local licenses and permits required.
Can I get a sales tax permit for my LLC in Rhode Island?
Yes, you can get a sales tax permit for your LLC in Rhode Island by registering with the Division of Taxation.
Can I register my LLC trademark in Rhode Island?
No, trademarks are registered through the federal government and are not state-specific.
Can I form a foreign LLC in Rhode Island?
Yes, you can form a foreign LLC in Rhode Island if your existing LLC is registered in another state.
Is it easy to dissolve an LLC in Rhode Island?
Yes, dissolving an LLC in Rhode Island can be done easily with the appropriate paperwork and fees.
How much does it cost to dissolve an LLC in Rhode Island?
It costs $50 to file to dissolve an LLC in Rhode Island.

Also Read

How to Save Money While Starting Your Business LLC in Rhode Island

One of the most important ways to cut costs when starting your LLC in Rhode Island is to conduct thorough research. Take the time to understand the legal requirements, tax implications, and fees associated with forming an LLC in the state. By familiarizing yourself with the process, you can avoid unnecessary expenses and make informed decisions that will save you money in the long run.

Another effective way to save money when starting your business is to DIY as much as possible. While it may be tempting to hire professionals to handle tasks like legal paperwork, accounting, and website design, these services can be expensive. By taking the time to educate yourself on these matters and do them yourself, you can significantly reduce costs.

When it comes to legal matters, there are plenty of online resources and tools that can help you file the necessary paperwork and create legal documents for your LLC. Additionally, there are many free or low-cost accounting software options available that can help you manage your finances without the need for an expensive accountant.

In terms of website design, many user-friendly platforms like Wix, Squarespace, or WordPress offer affordable templates that can be customized to fit your needs. These DIY website builders are easy to use, even for those with limited technical skills, and can save you thousands of dollars compared to hiring a professional web developer.

Another important way to save money when starting your business is to prioritize your expenses and only invest in essential items. It can be tempting to splurge on fancy office furniture, expensive marketing campaigns, or unnecessary software tools, but these expenses can quickly add up and eat into your startup capital. Instead, focus on investing in items that will directly impact your business’s success, such as quality products or services, effective marketing strategies, and essential equipment.

Additionally, networking and building relationships with other entrepreneurs and small business owners can be a valuable resource in saving money. By connecting with like-minded individuals, you can share knowledge, resources, and even collaborate on projects to reduce costs. Networking can also lead to potential partnerships, joint ventures, or mentorship opportunities that can help you grow your business without spending a fortune.

Ultimately, starting a business in Rhode Island does not have to break the bank. By conducting thorough research, DIYing as much as possible, prioritizing expenses, and networking with other entrepreneurs, you can save money and successfully launch your LLC without compromising on the quality of your products or services. Remember, every dollar saved is a dollar earned towards the success of your business.

Conclusion

Forming and maintaining an LLC in Rhode Island involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Rhode Island.

Leave a Comment