How Much Does an LLC Cost in Rhode Island? (2024)

Starting an LLC in Rhode Island involves a few key costs, including a $150 initial filing fee and a $50 annual report fee.

These initial expenses are just the tip of the iceberg when setting up your business.

There’s more to it.

Additional costs include registered agent services, choosing a business name, filing any “doing business as” (DBA) names, obtaining licenses, and paying taxes. These extra fees can catch new business owners off guard, but knowing them upfront can help avoid surprises.

Ready to learn more?

How Much Does an LLC Cost in Rhode Island?

Starting an LLC in Rhode Island involves several fees. Here are the main costs you should consider:

• Filing Fee for Articles of Organization: $150. This is the fee for filing your LLC’s formation documents with the state.
• Annual Report Fee: $50. Your LLC must file an annual report to maintain good standing.
• Name Reservation Fee: $50. This fee applies if you want to reserve your LLC name before filing.
• Registered Agent Services: Typically $100 to $300 per year. A registered agent is required to receive legal documents for your LLC.
• DBA (Doing Business As): $50. If you plan to operate under a different name, you must file for a DBA.
• Certificate of Good Standing: $20. You may need this if you want to conduct business in other states.
• Licenses and Permits: You’ll most likely need a Sales & Use Tax Permit, which costs $10. A Sales & Use Tax Permit is required of all businesses engaged in the following:
• Tax Obligations: Rhode Island LLCs are generally taxed as pass-through entities. This means the LLC doesn’t pay income tax; the profits and losses pass through to the members, who report them on their personal income tax returns.

LLC Costs in Rhode Island (Formation Fees)

Here’s a table outlining the costs associated with forming and maintaining an LLC in Rhode Island:

Rhode Island LLC Requirements	Cost
LLC Business Name Search	$0
Articles of Organization	$150
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$50/annually
LLC Name Reservation Fee (optional)	$50
Certificate of Good Standing (optional)	$20
Foreign LLC Registration (optional)	$150
Fictitious Name (DBA) (optional)	$50
Taxes	Varies
State Business License Fees	$10
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Rhode Island	$200 – $644

Total LLC costs in Rhode Island range from $200 to $644. If you do everything yourself and skip the optional extras, you might only spend around $200.

However, if you decide to pay for additional services and requirements, your costs could go up to between $400 and $644.

The first mandatory expense is the $150 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. Additionally, you must budget for the annual report, which costs $50 each year.

Now, let’s discuss the optional costs.

Conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) from the IRS is also free. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.

You may also want a Certificate of Good Standing, which costs $20. Registering a foreign LLC in Rhode Island incurs a fee of $150. Operating under a different name (DBA) costs $50.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.

Rhode Island LLC Business Name Search Cost ($0)

When starting your LLC in Rhode Island, you must ensure the business name you want is available. The good news is that conducting a business name search through the Rhode Island Secretary of State’s website is free.

The process is straightforward. You can visit the Rhode Island Secretary of State website to search for existing business names. Enter the name you have in mind, and the system will tell you if it’s already taken.

Rhode Island Articles of Organization ($150)

You must file the Articles of Organization to start your LLC in Rhode Island. This document officially establishes your limited liability company. The filing fee for this essential step is $150. This fee is paid only once at the time of filing.

The state will review your application once you submit the Articles of Organization. The regular Rhode Island LLC processing time varies by filing method. If you file online, expect approval in 3-4 business days. If you file by mail, expect it in 2 weeks.

Filing can be done online through the Rhode Island Secretary of State’s website. You’ll select “File a New Business Entity” and choose “Domestic Limited Liability Company” to access the Articles of Organization. Make sure all your information is accurate to avoid delays.

LLC Operating Agreement Cost in Rhode Island ($0 with Northwest)

An operating agreement is essential when starting an LLC in Rhode Island. This document outlines how your LLC will run and the roles of its members. It can help prevent misunderstandings among members.

Creating an operating agreement can be costly, ranging from $0 to $100.

However, if you choose to work with Northwest Registered Agent, you can get your operating agreement for $0. This makes it a budget-friendly option for new business owners.

Registered Agent Fee ($0-$300/year)

When starting an LLC in Rhode Island, you need a registered agent. This agent acts as your business’s point of contact for legal documents and important notices.

You have options for registered agent services. There’s no fee if you decide to act as your registered agent. You just need to provide your name and address. This can save you money, but it may not provide the privacy some business owners prefer.

Hiring a professional Rhode Island registered agent services usually costs between $100 and $300 per year. These services help ensure you don’t miss important documents and keep your personal information private.

For example:

• LegalZoom charges about $249 annually.
• ZenBusiness offers services for around $199 per year.
• Northwest Registered Agent provides a good deal. If you hire them to form your LLC, they offer free services for the first year. After that, their fee is $125 annually, which is competitive.

EIN Cost in Rhode Island ($0 from the IRS website)

When starting an LLC in Rhode Island, you need an Employer Identification Number (EIN). The good news is that obtaining an EIN is completely free. You can apply for it directly through the IRS website.

The process is simple and usually takes about 15 minutes. You will need to fill out an online application. It’s important to apply directly on the IRS site to avoid any fees charged by other websites.

Rhode Island Annual Report ($50 /annually)

You must file an annual report as a Limited Liability Company (LLC) in Rhode Island. This report costs $50 and is required every year. It helps keep your business information up to date with the state.

The filing period for your annual report runs from February 1 to May 1. It’s important to file on time to avoid penalties. If you miss the May 1 deadline, you could face an additional $25 fee.

You can file your annual report online, by mail, or in person. If you choose to mail it, send your report to:

Division of Business Services
148 W. River Street
Providence, RI 02904

LLC Name Reservation Fee in Rhode Island ($50)

In Rhode Island, reserving your LLC name is an important step. The fee to reserve a name is $150. This fee is for holding a specific name for your LLC before you officially file your formation documents.

You are not required to reserve your LLC name before formation. However, if you want to make sure your chosen name is available, reserving it can be a good idea. Once reserved, the name is protected for up to 120 days.

You can reserve your LLC name online or by mail through the Rhode Island Secretary of State’s office.

Fictitious Name/DBA Cost in Rhode Island ($50)

If you’re considering a DBA (Doing Business As) name in Rhode Island, you’re looking at a filing fee of $50. This applies to the fictitious name you want to use for your business.

You must submit a form to the Rhode Island Secretary of State to file for a DBA. Currently, there is no option for online filing. You will need to complete the necessary paperwork and mail it to their office.

Rhode Island Certificate of Good Standing ($20)

A Certificate of Good Standing shows that your LLC complies with state requirements. This certificate costs $20 in Rhode Island when requested by mail, phone, or in person. The fee is slightly higher at $22 if you order it online.

This certificate is important for various reasons. Many banks and lenders require it to open accounts or secure financing. It proves that your business is properly registered and authorized to operate.

Rhode Island Foreign LLC Registration Fee ($150)

If you are setting up a foreign Limited Liability Company (LLC) in Rhode Island, you must pay a registration fee of $150. This fee is required for foreign entities wishing to conduct state business.

When you apply for registration, you must submit several documents. One key document is the Certificate of Good Standing. This shows that your LLC is recognized and active in its home state. Ensure all paperwork is accurate to avoid delays.

You can make payments via check or money order, payable to the RI Department of State. It’s important to keep a record of your payment for your records.

Rhode Island State Business License Fee (varies by industry)

Rhode Island does not have a single, state-level business license that applies to all businesses. This means you may need to research specific licenses based on your industry.

The Sales & Use Tax Permit is a common requirement, which costs $10.

This permit is necessary for businesses involved in:

• Selling or leasing tangible personal property, such as craft items or electronics.
• Providing a range of services, from carpet cleaning to telecommunications.
• Serving food and beverages, which also requires a Meals & Beverage Tax Permit.

You can easily apply for these tax permits by emailing a Business Application and Registration form to the state’s tax department. Alternatively, registration can be completed online through the Rhode Island Division of Taxation.

In addition to the Sales & Use Tax Permit, there are other industry-specific licenses in Rhode Island.

Specific fields, like finance, building, or design, are regulated by specific agencies. You can check with the Department of Business Regulation to find out what licenses your LLC may need.

Rhode Island LLC Taxes (varies)

When you operate an LLC in Rhode Island, you should be aware of various state and federal taxes. LLCs are generally taxed as pass-through entities. This means profits and losses flow through to you, the member, to report on your tax return.

Here are some taxes you may encounter:

• Federal Taxes: You will pay taxes based on your total income.
• State Income Tax: Rhode Island has a progressive income tax structure.
• Local Income Tax: Some municipalities may levy local income taxes.
• Business Taxes: You might face additional business-related taxes depending on your industry.
• Minimum Annual Tax: Rhode Island requires a minimum tax of $400 each year.
• Self-Employment Taxes: You are responsible for self-employment taxes on your income.
• Unemployment Insurance Tax: If you have employees, this tax is applicable.
• Sales and Use Tax: Charged on the sale of goods and services.
• Payroll Tax: Required if your LLC has employees.
• Property Tax: This applies if your LLC owns real estate.

Rhode Island LLC reinstatement fee ($50)

If your LLC in Rhode Island needs to be reinstated, the fee is $50. This amount is paid to the Rhode Island Division of Business Services.

Reinstatement might be necessary if your LLC has been administratively dissolved. This can happen for several reasons, such as failing to file your annual report or not paying the minimum tax.

Rhode Island LLC dissolution fee ($50)

If you need to dissolve your LLC in Rhode Island, there is a formal process to follow. One important part of this process is the dissolution fee.

The fee to dissolve your LLC is $50. This amount must be paid when you file the Articles of Dissolution with the Rhode Island Department of State.

Rhode Island LLC Change of Registered Agent fee ($20)

Changing the registered agent for your LLC in Rhode Island is straightforward. You need to file a Statement of Change form with the Secretary of State.

The filing fee for this process is $20. This fee applies to all entities that need a registered agent change.

Before changing your registered agent, ensure they meet the state’s requirements. Your new agent must have a physical address in Rhode Island and be available during business hours.

What is the Cheapest Way to Start Rhode Island LLC?

Starting an LLC in Rhode Island can impact your overall cost in several ways. The main expenses include state fees and the services you may choose.

The state filing fee for an LLC is $150. You’ll need to pay this when you submit your formation documents. If you want to reserve your LLC name, there is an additional $50 fee.

One affordable option is to handle the filing yourself.

This way, you save on service fees from formation companies. However, you must research to ensure all documents are filled out correctly.

Using an online service can be convenient. Companies like ZenBusiness often provide packages that include filing and support services at competitive rates. Their Starter package can be one of the cheaper options available.

While these services save time, remember that they typically add extra costs to their base fee. If you choose a service, compare what is included to get the best overall value.

The downside to filing yourself is that it requires time and attention to detail. Any mistakes can lead to delays or additional fees. Services can reduce this risk but may not always be the cheapest route.

Should You Use an LLC Formation Service in Rhode Island? (here’s why)

When starting an LLC in Rhode Island, you might wonder if using a formation service is worth it.

There are benefits to consider.

• Peace of mind: The service handles paperwork, saving you time and stress, and ensuring you don’t miss important forms or deadlines.
• Privacy protection: Your address won’t be publicly listed since they provide a registered agent, adding a layer of security to your information.
• Compliance assistance: They help track deadlines and filing requirements, keeping your business compliant with state regulations.
• Expert support: Free access to LLC formation experts and attorneys, offering guidance without extra costs, which is particularly helpful for new business owners.

Frequently Asked Questions

How to set up an LLC in Rhode Island?

To set up an LLC in Rhode Island, follow these steps:

• Choose a unique name for your LLC.
• Appoint a registered agent.
• File the Articles of Organization with the state.
• Obtain any necessary licenses and permits.
• Pay the required filing fees.

Do I need a business license for an LLC in Rhode Island?

Yes, depending on your LLC’s activities and location, you may need a business license. It’s best to check local regulations to ensure compliance with any licensing requirements.

What are the benefits of an LLC in Rhode Island?

An LLC in Rhode Island offers several benefits, including limited liability protection for your assets, potential tax advantages, and flexible management structures.

How much does it cost to reinstate an LLC in Rhode Island?

Reinstating an LLC in Rhode Island costs $50. This fee covers filing the necessary documents to reactivate an LLC that has been dissolved or forfeited.

How much does it cost to dissolve an LLC in Rhode Island?

Dissolving an LLC in Rhode Island generally costs $50. Before dissolution, ensure all obligations, like taxes, are met.

Do I need to hire an attorney to form an LLC in Rhode Island?

You do not need an attorney to form an LLC in Rhode Island. Many people successfully file on their own using the provided forms and guidelines. However, consulting a lawyer can be beneficial for complex situations.

Should I hire an LLC formation service in Rhode Island?

Hiring an LLC formation service can save you time and ensure all paperwork is completed correctly. These services often offer added support, especially for those unfamiliar with the formation process.

Are there penalties for paying my fees late in Rhode Island?

Yes, there are penalties for late payments. If you fail to pay your annual fees on time, your LLC may face additional fines or could risk losing its good standing status.

What happens if I do not file my Rhode Island LLC annual report?

If you do not file your annual report, your LLC may be subject to penalties and could face administrative dissolution. It’s important to keep up with filing requirements to maintain your business status.