If you’re looking to start a Rhode Island LLC, you may be wondering about the associated costs with a Rhode Island business.
To save you time to focus on your business, we have spent months researching the costs and requirements to form a Rhode Island LLC.
In this article, we will review everything you need to know about fees associated with creating a Rhode Island LLC so that you know what to expect when establishing your business.
Quick Summary
- Filing the Articles of Organization for your Rhode Island LLC costs $150.
- For an LLC in Rhode Island, there is a $50 annual report fee that is included in the Rhode Island LLC cost. You can file this online between September 1st and November 1st annually.
- You can be your own Rhode Island registered agent or hire a professional resident agent. If you choose to be your own resident agent, your fee will be nothing; however, if you choose a professional service, it will be around $100 and up.
How Much Does An LLC Cost In Rhode Island?
An LLC in Rhode Island costs $150 for essential filing. This fee is to register your LLC in Rhode Island and file your LLC Articles of Organization through the Rhode Island Secretary Of State. This can all be done online, in person, or by mail [1].
The Rhode Island Secretary of State doesn’t offer expedited processing, and online order processing usually takes one to three business days.
Rhode Island LLC Filing Fee
The Rhode Island LLC filing fee costs $150. You have the option of filing online, mailing, or applying in person. This fee only applies when creating your LLC with The Rhode Island department of state.
A $50 annual report fee must be filed with the Rhode Island Department of State for an LLC in Rhode Island. You can submit this through the online filing system.
The fee is typically due between September 1st and November 1st. The Rhode Island Department of State charges a $50 penalty fee for failure to file on time.
Rhode Island Registered Agent Service Fee
When you create your LLC in Rhode Island, you must legally list a Rhode Island resident agent on your paperwork.
Whoever you choose as your resident agent must have a physical Rhode Island address and be open during regular business hours to accept paperwork.
A member of your LLC may serve as your resident agent, but that means they must be available during normal business hours every week of the year and have a registered physical address, which is why many businesses hire a registered agent.
Hiring a professional registered agent can also keep member information of your Rhode Island LLC off the public record.
Hiring a professional registered agent in Rhode Island will start around $100 and go up from there, depending on which resident agent service you choose to work with.
Rhode Island Business/ License Tax
The Rhode Island Division of Business Services has no state-level business license fee.
However, you will likely need to get a sales and use tax permit for $10 through the business services division.
A sales and use tax permit is necessary for businesses that [2]:
- Sell or lease personal property ranging from craft items to home entertainment systems.
- Provide services
- Serve food or beverages.
If you plan on serving food and beverages, you will also need a Meal and beverage tax permit with the business services division.
You can apply for tax permits online through the Rhode Island Division of Taxation.
There are also divisions within Rhode Island that regulate and issue state licenses for specific industries, including financial services, building, design, and fire industries. The fees and licenses for these will vary by industry.
You will need a professional license if your job requires technical training or any specialized education to be legally performed.
This can include law, medicine, landscaping services, and more. These professional licenses are issued by agencies and boards that oversee these specific professions within the state.
Other Rhode Island LLCs Filing Costs
There are other various factors included in the entire Rhode Island LLC cost, including:
1. Name Reservation
To reserve a business name in Rhode Island, you must submit an application and a $50 fee.
Name reservation prevents another business structure from using your desired business name before you are ready to register your small business. Your reservation lasts for 120 days.
Before you file your name, look up a Rhode Island LLC and check if the desired business name is available.
2. DBA Name
If you are considering doing business under any name other than your legal business name, you must register a Doing Business As Name, which costs $50.
In Rhode Island, DBAs are referred to as fictitious names.
You can register as many DBAs as you want but have to file a separate registration for each name, and the DBA doesn’t have to be renewed.
3. Certified Copies
You can order any certified copies of your LLC documents from the business services department, including your LLC operating agreement, Rhode Island Articles Of Organization, legal documents, and more, for $10 plus 15 cents per additional page [3].
Certified copies can be ordered by mail, phone, or in person; however, online ordering isn’t available.
4. LLC Certificate Of Good Standing
You can order an LLC certificate of good standing from the business service division for $22 online or $20 by mail, phone, or in person.
A good standing certificate shows your LLC complies with Rhode Island filings and fees.
Businesses are often required to provide a certificate of good standing if applying for a loan, being a part of legal proceedings, or registering a business in another state as a foreign LLC.
5. Business Insurance Premiums
If you have one or more employees, you must purchase workers' compensation insurance included in your LLC costs.
Workers' compensation insurance covers medical and other costs for employees who have suffered injuries in the workplace [4].
If you have a multi-member LLC, LLC members are considered employees and will require this coverage.
The price of your coverage will vary depending on how many employees you have and what hazards they are exposed to while working.
6. Employer Identification Number
An EIN costs nothing to file and can be done online, via mail, or by phone. You will need all LLC members' full legal names and addresses, social security numbers, a formal business name, and more.
7. Operating Agreement
A Rhode Island operating agreement isn’t required by law; however, getting one for your business entity is a good idea.
LLC operating agreements are legal documents that set the rules for how an LLC will run, including member’s rights and responsibilities.
The cost of an operating agreement will vary depending on if you are using an LLC formation service or a lawyer.
Rhode Island Foreign LLC Registration
When creating a foreign limited liability company in Rhode Island, you must pay the $150 state filing fee.
Paying the fee and filing an application for the registration of a foreign LLC will legally expand your LLC into Rhode Island.
Filing is available by mail or in person; you can’t file online.
You must also register and pay for all tax and business licenses before starting a business in Rhode Island.
FAQs
What Happens If I Don’t Pay My Filing Fee To The Rhode Island Government?
If you don’t pay your filing fee for an LLC, the Secretary Of State won’t accept and file your Articles of Organization, and you won’t have LLC status. You may also need to pay a fee if you don’t file your annual report.
How Long Will It Take To Form A Rhode Island LLC?
How long it takes to create your LLC depends on how you file your Rhode Island LLC Articles Of Organization. Typically, your LLC will be approved in 3 to 4 business days if you file online; if you file by mail, it will take that long, plus mailing time.
How Much Is A Rhode Island Business Bank Account?
How much is a Rhode Island business bank account varies depending on the bank. Some banks charge around $10 to $20 monthly fees. Still, these can be avoided occasionally by meeting specific requirements such as several direct deposits or a minimum balance. Some banks don’t charge monthly fees.
Is Rhode Island A Good State To Form An LLC?
Yes, Rhode Island is an excellent state to form an LLC. They don’t charge a state business license fee; they have quick approval times and more.
Do You Need Professional Help With Your Rhode Island LLC?
Rhode Island is an excellent state for forming an LLC because you don’t need a state business license, and their filing fee is relatively affordable.
If being your registered agent and trying to keep track of all the rules when creating your Rhode Island LLC sounds exhausting, these best Rhode Island LLC formation services are available to assist you through the process.
The formation services teams can manage annual reports, Articles of Organization, operating agreements, acting as your LLC’s resident agent, and more for your Rhode Island LLC.
References:
- https://www.sos.ri.gov/divisions/business-services/business-basics/costs-and-fees
- https://tax.ri.gov/tax-sections/sales-excise-taxes/
- https://www.sos.ri.gov/divisions/business-services/order-certified-copies
- https://dlt.ri.gov/workers-compensation
