How Much Does a Rhode Island LLC Cost? (Here’s How You Save)
Hire Professionals to Create a Rhode Island LLC (from $0 + state fees)
Forming an LLC in Rhode Island isn’t only about paying the filing fees. Don’t be intimidated by what you think might be expensive costs, because we’ve got your back! We’ll provide all of the details regarding initial and recurring expenses so that you can get started with more savings than expected. Plus, our tips will help ensure those funds don’t go to waste either!
Ready to start your own LLC but hesitant about the next steps? Read our easy step-by-step guide on how to start your own LLC (in any state).
If you want to skip the hassle of starting a Rhode Island LLC yourself, consider using professional help for the best price in the market:
- Northwest Registered Agent ($39+state fees) (best support)
- ZenBusiness ($0+state fees) (best price)
- Hire Professionals to Create a Rhode Island LLC (from $0 + state fees)
- Quick Costs for Rhode Island LLC Breakdown & Best Options
- Pros and Cons of Starting Your Own LLC in Rhode Island
- How Much Does an LLC Formation Cost in Rhode Island?
- Rhode Island Annual Report Fee ($50)
- Rhode Island Foreign LLC Cost ($150)
- Rhode Island Registered Agent Fee ($39 or $125/year)
- LLC EIN Number Fee ($0)
- Other LLC Filing Costs (Optional)
- Cost of Filing Formation Certificates
- Rhode Island Business License and Permit Fees (varies)
- LLC Taxes (varies)
- Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
- Tips On How To Save Money While Forming Your LLC in Rhode Island
- How to Start an LLC in Rhode Island?
- Things To Do After Setting Up Your Own LLC
- Get Professional Help in Forming an LLC in Rhode Island
Quick Costs for Rhode Island LLC Breakdown & Best Options
|Who forms the LLC?||Total fees|
You form the LLC in Rhode Island Yourself
|$200 = ($150 Articles of Organization +$50 Annual fee + $50 Name reservation)|
|by using ZenBusiness||$0 + state fees|
|by using Northwest Registered Agent||$39 + state fees|
|see our other best LLC services||varies|
Pros and Cons of Starting Your Own LLC in Rhode Island
Starting a Limited Liability Company (LLC) in Rhode Island has many advantages, however, there are also important factors to consider before beginning the process.
Starting a Limited Liability Company (LLC) in Rhode Island can be advantageous for entrepreneurs.
Starting a business in Rhode Island could result in considerable cost savings with the right setup and diligence.
Among the possible drawbacks of starting an LLC in this state are the cost, additional paperwork requirements when compared to other states, and specific restrictions on ownership.
Although there are certainly plenty of pros to be gained by forming an LLC in Rhode Island, it is important to consider these cons as well when making a decision.
How Much Does an LLC Formation Cost in Rhode Island?
Rhode Island LLC Online Filing Fee ($150)
The principal investment to begin your LLC is a mere $150 paid towards the Rhode Island Department of State when you submit an online Rhode Island LLC Articles of Organization.
Rhode Island Annual Report Fee ($50)
For business entities in Rhode Island, filing an annual report is mandatory with the Department of State – and it must be completed before November 1st.
The state also imposes a hefty penalty fee of $50 if you fail to submit your form on time through their online filing system which can be found at Rhode Island Business Services Online Filing System. Don’t wait until the last minute to file or else face potential fines and overdue penalties!
Rhode Island Foreign LLC Cost ($150)
If you possess an LLC that is already registered elsewhere and are interested in expanding your business into Rhode Island, it is necessary to register your foreign LLC with the state.
Fortunately, this process can be completed relatively quickly for a fee of $150 by filing Form 450: Application for Registration for a Foreign Limited Liability Company. This form’s completion will officially authorize your outside-state business operations in Rhode Island as well!
Rhode Island Registered Agent Fee ($39 or $125/year)
All Limited Liability Companies (LLCs) in Rhode Island must designate a Registered Agent who will be responsible for receiving legal documents and state notices.
The Rhode Island Resident Agent or organization should have an address within the state, and needs to remain accessible during typical business hours at no extra cost; it may even be yourself or someone you know!
Here are our recommended Agent service providers:
- Northwest Registered Agent services is the perfect choice for those seeking to establish a new business and gain access to a registered agent, with a full LLC creation package starting at only $39 + state fees.
- When you only require a professional registered agent service, Northwest is the perfect solution. Their exceptional RA service comes at an unbeatable price of $125/year!
Hiring a Registered Agent Service is a Good Idea If
You’re looking to keep your address off of the public record, then hiring a Resident Agent in Rhode Island can be the right solution for you. The only caveat is that they must have an actual physical address located within the state. However, depending on which company you select as your agent, they may allow you to use their own address instead so that yours remains confidential.
LLC Operating Agreement Fee ($0)
A Rhode Island LLC Operating Agreement is a legal document negotiated between the members of your business that outlines key information such as ownership, management structure, and profit distribution. This vital agreement will ensure smooth operations for years to come!
An Operating Agreement is an essential document for both Single-Member LLCs and Multi-Member LLCs; not only should you keep it with your business documents, but also provide a copy to each Member. Unfortunately, most websites charge exorbitant fees of $50 – $200 for these agreements. Fortunately, though, there are more budget-friendly options out there!
LLC EIN Number Fee ($0)
A Federal Employer Identification Number (FEIN) or an Employer Identification Number (EIN), is absolutely essential for a Limited Liability Corporation. Whether you want to file income taxes, open up bank accounts, hire employees or any other official action- having this number will be mandatory.
You may find several websites that charge fees for getting your EIN; however it can easily be done free of cost through the Internal Revenue Service’s online filing process! It takes only minutes and you’ll have everything in place in no time!
EIN number is also essential for your Business bank account.
Other LLC Filing Costs (Optional)
There are optional fees associated with LLC formation:
LLC Name Reservation ($50)
Secure your LLC name before formation and safeguard it for up to 4 months by filing a Name Reservation (Form 620) and paying the $50 fee.
“Doing Business As” (DBA) Name ($50)
To have a business name different from your legal LLC, you must file Form 624B and pay the $50 filing fee. Doing so will register your Fictitious Business Name Statement with the county clerk’s office.
Certified Document Copies ($10)
Secure certified copies of your Rhode Island business documents from the Department of State by simply paying a flat fee of $10 plus an additional 15 cents per page.
Certificate of Good Standing ($22)
To obtain a Rhode Island Certificate of Good Standing, you need to request one through the Department of State and pay either an online fee of $22 or mail/in-person fee at $20. Banks and lending institutions often require this certificate as part of their process.
Cost of Filing Formation Certificates
|Rhode Island||Domestic LLC||Foreign LLC|
|Name Reservation fee||$50||$50|
|By Mail||By Mail: Fill out the application form, and send it to Division of Business Services 148 W. River Street Providence, RI 02904. Costs $150.||By Mail: Fill out the application form, and send it to Division of Business Services 148 W. River Street Providence, RI 02904. Costs $150.|
Rhode Island Business License and Permit Fees (varies)
If you own a Limited Liability Corporation (LLC) in Rhode Island, additional business licenses or permits may be necessary for your industry. A City Business Permit is just one example of the many potential requirements that can vary depending on where you conduct business and what sector it’s in. However, these fees typically aren’t substantial – some are even issued by state authorities while others come from local municipalities such as towns, cities or counties.
LLC Taxes (varies)
Depending on the type of Rhode Island LLC, there are numerous taxes that must be paid each year. This makes the annual cost very inconsistent.
According to Rhode Island law, some of the taxes LLC owners pay include:
- Federal taxes
- State and Local income tax
- Business Insurance taxes
- Minimum annual tax
- Self-employment taxes
- Unemployment insurance tax
- Sales and use tax
Considering that your Rhode Island LLC taxes rely on what type of business and activity you conduct, it’s impossible to provide a general estimate. Every company is unique, thus the appropriate employment taxes and yearly fees differ for each LLC. To learn more about specific tax requirements for your particular situation, contact us today!
Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
Have questions regarding the amount of money it costs to form a Rhode Island LLC? Reach out to the Business Services Division at the Rhode Island Department of State (also known as the Secretary of State). They will be more than happy to answer any queries you may have.
Tips On How To Save Money While Forming Your LLC in Rhode Island
Creating an LLC in Rhode Island requires some legal fees and resources. However, there are ways to save money in the process.
To begin, shop around for the best deals from qualified lawyers with experience forming businesses.
In addition, educate yourself on the less expensive regulations regarding taxes when setting up an LLC in Rhode Island and consider other legal aspects of forming a business, such as drafting operating agreements.
Furthermore, you may be able to take advantage of online services for registering your LLC; however, it is important to ensure everything is filled out correctly so paying a bit extra for assistance may be worthwhile.
Finally, look into free resources from your local government or library which might provide helpful insight into the LLC formation process.
How to Start an LLC in Rhode Island?
After Deciding your Budget for LLC its time to set up the LLC. You can follow these steps to form your LLC in Rhode Island with ease.
Step 1: Choose a Name for Your LLC
It is essential to remember that according to Rhode Island regulations, an LLC name must finish with the words “Limited Liability Company” or their abbreviations (“LLC,” “L.L.C.”). To make sure your chosen business entity’s title stands out from others already registered with the Secretary of State, take advantage of the Rhode Island Secretary of State’s handy business name database; it will allow you to quickly check for availability!
Securing a name for your business is now simpler than ever in Rhode Island – the process only takes 120 days! All you need to do is submit Form 620, also known as Reservation of Entity Name, to the Secretary of State’s Corporations Division. You can file this form easily online or through the mail.
Step 2: Appoint a Resident Agent
If you’re forming an LLC in Rhode Island, it is necessary to have an agent for service of process within the state. This individual or business entity will accept any legal documents that are served on behalf of your LLC if a lawsuit arises. The registered (or resident) agent must be either a Rhode Island resident or a company with proper authorization to operate in the state and also possess a physical street address located there as well.
Step 3: File Articles of Organization
To establish a Rhode Island LLC, you must file Rhode Island Articles of Organization (Form 400) with the Rhode Island Department of State.
Step 4: Prepare an Operating Agreement
Although an LLC operating agreement is not necessary in Rhode Island, it’s highly recommended for the protection of all parties involved. This document serves as a blueprint that outlines every right, duty and responsibility to be respected by all members of the LLC. Best yet – this Operating Agreement stays private within your business and isn’t required to be filed with any state agency! Without an operating agreement, existing articles of organization and/or bylaws, member control or limited liability company agreement will act collectively as the operational framework for any established LLC or those newly created.
Step 5: Obtain an EIN
When forming an LLC with multiple members, it is imperative to secure an IRS Employer Identification Number (EIN).
If you are the only member of this entity then you must acquire one if hiring staff or electing for taxed as a corporation instead of being treated as sole proprietorship.
Luckily, obtaining your EIN will cost nothing when completing the online application located on their website!
Step 6: File Annual Reports
Every Rhode Island LLC and any foreign LLCs registered with the Rhode Island Secretary of State must submit a Limited Liability Company Annual Report (Form 632) along with a $50 filing fee for continued authorization in this state.
It is critical to submit the report every calendar year between September 1st and November 1st starting from the moment after you file your LLC’s original Articles of Organization with the Secretary of State. This can be done either Online or through postal mail- whichever works better for you. To ensure no details are missed, keep in mind to check up with your resident agent about filing this obligatory document!
Things To Do After Setting Up Your Own LLC
After setting up your LLC, there are a few key steps that must be taken in order to ensure it’s a success.
- Filing taxes,
- Obtaining the necessary licenses and permits,
- Creating an operating agreement,
- Opening a bank account with the LLC name and funding it,
- Establishing a good accounting system.
It is advisable to hire experts when completing these steps to make sure everything is done correctly. Properly following each of these procedures will help you get your LLC off the ground quickly so you can begin taking advantage of the benefits that come along with this business structure.
Get Professional Help in Forming an LLC in Rhode Island
It can be difficult and time-consuming to form a Rhode Island LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!
#1 – Create an LLC in Rhode Island Using Northwest Registered Agent
Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read Northwest review here.
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
#2 – ZenBusiness Will Form an LLC in Rhode Island For You
ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our ZenBusiness review here.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.