Form an LLC in Rhode Island with Tailor Brands
Forming an LLC in Rhode Island is a smart move, especially if you work with Tailor Brands. This company has successfully helped over 500,000 businesses start their operations in different states in the US.Leverage Tailor Brands and start your LLC in Rhode Island today.
$0 + State Filing Fee
Tailor Brands makes it easy to start your LLC in Rhode Island without the usual stress.
Its automated system ensures compliance with annual filings and state requirements.
With the Elite plan, you’ll get access to branding tools and a free domain for your first year.
Things You Must Know Before Starting an LLC in Rhode Island
Forming an LLC in Rhode Island isn’t complicated, but there are some crucial things you should be mindful of before kickstarting the process. They include the following:
- You must choose a unique name that’s distinguishable from existing entities in the country. The cost of reserving a business name in Rhode Island is $50 for 120 days.
- You must pay a $150 fee for filing Articles of Organization, as well as a $50 fee for filing Annual Reports. Late filing of the annual reports in Rhode Island comes with a $25 penalty, and an additional $3 to file online.
- The state of Rhode Island imposes a minimum annual tax starting from $400. The fees incurred for third-party Resident Agent Services typically range between $100 to $300 per year.
- The approximate processing time for forming an LLC in Rhode Island is anywhere between one to two business days through online filing. If you file through mail, it should take two to three business days.
20+
Tools and Services
4.5
Stars TrustPilot Rating
500k+
Registered Companies
24/7
Email Support
How to Form an LLC in Rhode Island
Starting an LLC in Rhode Island isn’t very different from other states. However, there are some unique things you must take into account. Read the steps below to find out how to create an LLC in this state.
1. Choose a Business Name
When starting an LLC in Rhode Island, choose a unique business name that reflects your brand and leaves a strong impression. Ensure it complies with state naming rules. This includes using the word “LLC” or its variations at the end of the business name.
Your business name must also be unique, which means it isn’t already used by another state entity. To confirm availability, conduct a business name search through Rhode Island’s official business database before registering your Limited Liability Company.
2. Create a Business Plan
If you’re starting an LLC in Rhode Island, then you need a business plan to structure your ideas. A business plan also shows the state that you’re serious and organized. And while it’s not a legal requirement for starting a business, it’s crucial when dealing with banks or investors.
Rhode Island expects every LLC to have a clear direction, especially if you’re applying for certain licenses or permits. A business plan helps you figure out how your Limited Liability Company will operate on a daily basis in the state.
3. Reserve a Domain and Business Name
After choosing the perfect name for your LLC in Rhode Island, it’s wise to reserve it before completing the name registration. This prevents others from claiming it first. Like many other states, Rhode Island allows you to reserve your business name for 120 days.
The process starts by filing a Reservation of Entity Name and paying a $50 fee. While reserving your business name, secure a matching domain. It’s also a smart idea to claim consistent social media handles to strengthen branding.
4. Find the Capital
If you’re starting an LLC in Rhode Island, you’ll likely need funds to cover filing fees, licenses, and early operations. Even though the state doesn’t ask where your money is coming from, it’s important to plan for your capital so as not to slow down your LLC formation process.
Banks, lenders, and some state-backed programs want to see that your LLC in Rhode Island is set up to make money, not just exist on paper. Having capital upfront shows you’re ready to run a real business, not just file the paperwork.
5. Check Zoning Requirements
Local laws can block certain business types from operating in specific areas. Therefore, if you’re forming an LLC in Rhode Island, zoning should be one of the things on your business startup checklist. Skipping this can lead to fines or being shut down.
Additionally, each city or town in Rhode Island has its zoning map and process. Before signing a lease or buying property, make sure your business fits the local zoning rules. This can save you a lot of trouble down the road.
6. Appoint a Rhode Island Registered Agent
The next step is appointing a Rhode Island Registered Agent. This serves as the official point of contact between the state and your business. Alternatively, you can act as your own registered agent for your Rhode Island business.
The Rhode Island registered agent must be based in and authorized to do business in the state. That means maintaining a physical street address where official documents can be mailed to and observing normal business hours.
7. Choose Your Type of LLC
When forming an LLC in Rhode Island, you can choose from multiple types. It can be a domestic or foreign LLC, as well as member-managed or manager-managed. Other options include single-member, multi-member, or professional.
Your choice depends on the nature of your business. Remember that each type of LLC comes with its regulations and protections. If you’re unsure, check with the Rhode Island Business Registration Office to help you make an informed decision.
8. Develop an LLC Operating Agreement
An LLC operating agreement isn’t usually required for forming an LLC in Rhode Island. However, it’s highly recommended because it makes it easy to conform to the rules stipulated in the Rhode Island Limited-Liability Company Act.
For example, an LLC operating agreement can help maintain your limited liability status in case you get sued, effectively protecting your assets. It’s also a business legal document that helps you easily open a business bank account.
9. File Your Rhode Island Articles of Organization
Forming an LLC in Rhode Island involves filing your Articles of Organization with the Rhode Island Secretary of State. The Articles of Organization are an essential document that will allow you to lawfully form your LLC in Rhode Island.
You can file your Rhode Island Articles of Organization through the mail or online. Either way will cost you $150 each, but each has a different timeline. Sending by mail takes between three to four business days for the organization to be approved.
10. Submit Your LLC Statement of Information
Formation of an LLC in Rhode Island also involves filing a statement of information. This document keeps your company in good standing and updates the Secretary of State on any changes to your business, like a new address.
The deadline is usually on the 1st of March each year, and the filing fee is $50. You can do it online through the Rhode Island Department of State’s Business Services page or by mail. Rhode Island imposes a $25 penalty if you miss this deadline.
11. Obtain an Employer Identification Number (EIN)
If you plan to hire employees after forming your LLC in Rhode Island, then you need to get an Employer Identification Number. Applying for an EIN is free and requires your Social Security number or your Individual Taxpayer Identification Number.
The whole process is done online and takes about 15 minutes. After this, you’re issued your EIN, which you can then download and print. You can also apply for an EIN by mail, but it could take longer.
12. Open a Business Bank Account
A bank account is necessary for the formation of an LLC in Rhode Island. You’ll need a few business legal documents for this, such as your Articles of Organization, business name, address, and authorized signatories.
Other potential requirements include a business plan, your business EIN, and an initial deposit. The biggest advantage of having a business bank account separate from your personal one is that it protects your assets if your business gets sued.
13. Get Business Licenses and Permits
You need to register with the Rhode Island Department of State to obtain a business license and permit for your LLC in Rhode Island.
Getting licensed offers legal and liability protection. It also protects your brand, preventing competitors from copying your business model and name. Lastly, it helps ensure compliance, helping you avoid fines or a shutdown.
The issuing of licenses and permits depends on the nature of the business. For example, a restaurant will have different permit requirements from a construction company. Check with the Rhode Island Department of Business Regulation for the proper license and permits.
14. Pick Your Tax Structure
An LLC in Rhode Island can elect to be taxed in different ways: as a Sole Proprietorship, Partnership, C-Corporation, or S-Corp. For example, if it’s taxed as a corporation, it pays a 7% corporate tax on profits. Those profits are taxed again when distributed to shareholders.
On the other hand, other tax structures offer pass-through taxation, where you and your partners report business income on your personal tax returns. This eliminates double taxation and helps secure your core profits.
15. File for DBA (Optional)
Filing for Doing Business As (DBA) is optional when forming an LLC in Rhode Island. However, a Doing Business As is necessary if you want to use a more marketable trade name that’s different from your official business name.
Informal businesses like general partnerships can file for a DBA with their respective local county or municipal offices, depending on the jurisdiction. On the other hand, formal incorporations like LLCs can file for a Doing Business As with the Rhode Island Secretary of State.
16. Acquire Business Insurance
Every LLC in Rhode Island needs business insurance to protect it from various risks like property damage, financial loss, or worker injury. You may need certain types of insurance, especially if you hire employees or work in specific industries.
State regulations don’t require every LLC in Rhode Island to carry general liability insurance. However, certain business licenses, permits, or contracts may require it. Operating without required insurance can lead to delays, lost opportunities, or even denial of a license.
However, it won’t necessarily cause fines or shutdowns unless specific regulations apply.
17. Get a Trademark (Optional)
Next on our list of important steps to take when forming an LLC in Rhode Island is registering your trademark. The registration process starts with a detailed nationwide research to determine the availability of the trademark you want to use.
If available, you’ll need to pay a non-refundable fee of $50 to the Rhode Island Department of State. You then have to confirm your filing and wait for the Department of State to either confirm or reject your trademark application.
18. Maintain Compliance
With your LLC now ready, you must ensure that your newly formed business maintains good standing with the state government. Failure to adhere to business rules and regulations could lead to hefty fines or, worse, the dissolution of your LLC.
Compliance means filing the right taxes on time, submitting statements of information when required, and so on. You must also notify the Rhode Island state office of any changes to your business, such as name or address changes, right away.
Why Is Outsourcing LLC Formation Services Beneficial?
As illustrated through the steps in the last section, forming an LLC in Rhode Island is fairly straightforward. However, it’s a good idea to outsource LLC formation services to experts for the following reasons:
Smoother Process
Hiring a professional helps the process go well without hurdles.
Forming an LLC involves paperwork. You must also deal with government offices. Outsourcing means you just fill out a form and send the essential documents.
Minimal Errors
A single error on your application or paperwork can lead to rejection.
Hiring a professional means they’ll double-check everything and catch any errors. Since they’ve handled this for many businesses, they know the process well.
Speedy Filing
Creating a new business comes with a lot of paperwork.
Handling it all yourself can eat up a lot of time, but outsourcing lets a professional take over the review and filing, getting it done faster than you likely could on your own.
Benefits of Starting an LLC in Rhode Island
If you’re planning to start a business, one of the questions you ask yourself is what kind of business entity would be most beneficial.
If you’re considering forming an LLC in Rhode Island, here are some of its advantages over other types of businesses.
Liability Protection
One of the key advantages of starting an LLC in Rhode Island is that your personal assets are generally protected from business debts or legal actions. If your LLC faces a lawsuit or financial trouble, your personal property is usually off-limits.
Unlike a sole proprietorship or partnership, an LLC keeps your business and personal finances separate, which adds peace of mind. This kind of protection is why most people choose to form an LLC in Rhode Island.
Low Filing Fees
An LLC in Rhode Island won’t break the bank at startup. The state charges a reasonable fee for Limited Liability Company registration compared to other types of business entities. That’s why it’s appealing for entrepreneurs seeking to start their business affordably.
For instance, you only need $150 to file Articles of Organization for an LLC in Rhode Island. Meanwhile, the fees for a Corporation in the same state cost $230.
Ease of Management
Managing an LLC in Rhode Island is simple and flexible. The state doesn’t impose strict regulations on how an LLC should be managed, which makes it easier for owners to run their businesses even without any external assistance.
Additionally, LLCs in the state only need to file an annual report and pay a small fee to maintain good standing. Rhode Island LLCs don’t need to set up regular board meetings and are not subject to complex procedures.
Pass-Through Taxation
One of the best tax benefits of an LLC in Rhode Island is the pass-through taxation feature. This means that the business itself doesn’t pay federal income taxes. This is very favorable for business startups on tight budgets.
Instead, any profits or losses are passed on to the individual members, who report them on their personal tax returns. This avoids the undesirable “double taxation” that corporations often face, leaving more money to return to the business.
Ability to Enter into Contracts
Forming an LLC in Rhode Island grants your business the legal ability to enter into contracts. As a legally recognized business entity, a Limited Liability Company can sign agreements, take out loans, hire employees, and more.
This is important because it provides a clear legal structure for your business relationships. Contracts can be signed in the LLC’s name, meaning the business itself assumes responsibility, not the individual owners.
Less Paperwork
One of the most attractive features of an LLC in Rhode Island is the reduced amount of paperwork required. Compared to corporations, which are subject to more extensive filings, LLCs in Rhode Island have a much simpler process.
Rhode Island only requires a few basic documents, like the Articles of Organization, to get started. Because you don’t deal with complex administrative requirements, you not only save time but also make the process affordable for LLC startups on a budget.
Business Name Protection in the State
When you start an LLC in Rhode Island, you gain exclusive rights to your LLC name within the state. This means that no other business can operate under the same name, which helps prevent confusion and protects your brand identity.
You also reserve the right to sue anyone who tries to use your brand name, reducing the risk of brand infringement. It’s recommended that you maintain the uniformity of your business brand name across all platforms, including social media.
Ability to Hold Assets
An LLC in Rhode Island also provides the ability to hold assets in its name. This means the LLC can own property, vehicles, equipment, and other valuable items. All of these are legally separate from personal assets.
This ability is crucial for businesses that need to invest in physical property or build up their resources over time. It can also help establish credibility when working with banks, investors, or other financial institutions.
Tailor Brands Rhode Island LLC Formation Services: Free + Paid Plans
If you don’t have the time to go through the entire process of forming an LLC in Rhode Island, then consider using business formation services like Tailor Brands. You can go with the free plan or any of the other two premium, but affordable, options.
Here’s what you’ll get with each plan:
Lite
The Lite Plan is the lowest tier plan. This Tailor Brands plan is great for basic LLC formation. It includes:
- LLC Formation: Tailor Brands handles the preparation and filing of your Articles of Organization for your LLC in Rhode Island.
- Business Coaching Program: This plan provides business development tips so you can grow your LLC in Rhode Island effectively.
- Invoicing and Bookkeeping Trial: This 30-day free trial helps you manage your business finances more efficiently.
This plan can help you form your LLC in Rhode Island. They handle everything for you; you don’t have to worry about making mistakes on the application. Also, you only have to pay the state filing fee. If you need more features later on, you can always upgrade to a paid plan.
Price: $0 + state fees
Essential
The Essential Plan builds on the basics by adding tools to keep your LLC running smoothly and staying compliant. Here’s what’s included:
- $30 Amazon Gift Card: This Tailor Brands plan offers a $30 gift card you can spend towards supplies or services for your LLC in Rhode Island.
- Expedited Processing: This feature makes sure that your Rhode Island LLC application gets top priority and is processed within two business days.
- Annual Compliance Alerts: With Tailor Brands, you can stay on top of key deadlines with reminders for tax filings for your LLC in Rhode Island.
- Operating Agreement Support: Tailor Brands helps you create an operating agreement to set up the structure and rules for your LLC in Rhode Island.
Price: $199/year + state fees
Elite
The Elite Plan is Tailor Brands’ most comprehensive option, packed with tools to help you build and grow your brand. Here’s what you get:
- Free Domain for One Year: Boost your online presence with a custom domain during your first year in business.
- Business Card Design Tools: Create both digital and print-ready business cards using customizable templates.
- Branding Features: Get eight free logos and a full set of branding materials to give your LLC in Rhode Island a clean look.
- DIY Website & Online Store: Build and manage your business website or store with user-friendly tools, no tech skills needed.
- Social Media Tools: Easily design eye-catching posts for your social channels using Tailor Brands’ post maker.
- $50 Amazon Gift Card: This gift card with a larger amount can help you pick up more supplies or tools to support your business.
This plan is perfect if you want to set up your Limited Liability Company and hit the ground running with a strong brand and online presence.
Price: $249/year + state fees
Additional Services Offered By Tailor Brands for an LLC in Rhode Island
Tailor Brands also offers a variety of extra services to make running your business easier. Here are some of the key add-ons:
Licenses & Permits
Tailor Brands makes sure your business is legally compliant by helping you acquire necessary business licenses and permits. This saves you from costly state penalties in the future.
EIN Application
Acquire an Employer Identification Number, which is crucial for applying for licences and opening business accounts. Tailor Brands ensures the process is streamlined.
Tax Filing
With Tailor Brands, you don’t have to worry about missing tax deadlines. You’ll have a team of tax experts beside you for guidance on how to navigate through the hectic tax season.
Business Insurance
Tailor Brands ensures your LLC in Rhode Island is properly insured. It selects the best coverage according to your business type. This ensures your business assets are protected.
Trademark
Tailor Brands secures the trademark for your LLC in Rhode Island, ensuring you can use it anywhere in the United States. This safeguards your intellectual property and brand identity.
Bookkeeping
Tailor Brands offers expert bookkeeping services for your LLC in Rhode Island. This helps maximize deductions while balancing all your books and tracking cash flows.
Why You Should Use Tailor Brands to Form an LLC in Rhode Island
Tailor Brands is your best bet when it comes to LLC formation in the United States. The experience it has accumulated over the years means that with Tailor Brands, you get the best services without breaking the bank.
No Hidden Charges
Unlike other companies that charge hundreds for a similar service, Tailor Brands does it 100% free. There are no hidden fees or surprise service charges. Just pay the state filing fee, and they’ll handle the rest.
Professional Help
With Tailor Brands, you can access experienced professionals across different fields. You can also add services like business insurance, tax filing support, and help setting up your business bank account.
Smooth Experience
Why deal with the headache of confusing paperwork and state departments when you can let someone else handle it? Tailor Brands takes care of reviewing and filing everything you need to get started.
FAQ
The filing fee to form an LLC in Rhode Island is $150. You’ll pay this to the Rhode Island Department of State when you file your Articles of Organization.
You can file online or by mail, but the fee stays the same either way. This is a one-time payment that officially registers your LLC in Rhode Island.
After your LLC is set up, you’ll need to file an annual report to keep your business active and in good standing. The annual report fee for an LLC in Rhode Island is $50, with a $25 late penalty.
If you hire a registered agent service, that’s an extra cost, usually anywhere from $100 to $300 per year. However, you can also be your own registered agent if you meet the state’s requirements.
Other costs might include business licenses (depending on what your LLC in Rhode Island does) and any optional services like expedited filing or legal help.
But if you’re just talking about the basics to get up and running, you’re looking at $150 upfront and $50 each year after that.
You can start an LLC in Rhode Island by following these steps:
- Choose a Business Name: Pick a name that’s unique, easy to remember, and follows Rhode Island’s naming rules. It also needs to include “LLC,” “Limited Liability Company,” or its variations.
- Reserve a Business Name and Domain: If you’re not ready to file right away, you can reserve your LLC name with the state. It’s also smart to grab the matching domain name so nobody else snatches it.
- Appoint a Rhode Island Registered Agent: Your LLC needs a registered agent with a physical address in Rhode Island. This person (or service) will handle legal papers and official mail.
- Choose Your Type of LLC: Decide if you’re setting up a single-member or multi-member LLC. You’ll also want to think about whether it’s going to be member-managed or manager-managed.
- Create an LLC Operating Agreement: This isn’t required by the state, but it’s highly recommended. It lays out how your LLC in Rhode Island will run, including member roles, voting rights, and how profits are shared.
- File Your Rhode Island Articles of Organization: This is the official paperwork that makes your Limited Liability Company real. You’ll file it with the Rhode Island Secretary of State and pay a filing fee.
- Submit Your Rhode Island LLC Statement of Information: This is where you provide basic information about your business, like who’s running it and how to contact you. It helps keep your LLC in Rhode Island in good standing.
- Obtain an Employer Identification Number (EIN): Think of an EIN like a Social Security number for your business. You’ll need it to open a bank account, hire employees, and file taxes.
- Open a Business Bank Account: Keeping your business and personal finances separate is key. A dedicated business account helps you stay organized and look professional.
- Acquire Business Licenses and Permits: Depending on what you do and where you’re located, you might need certain licenses or permits to legally operate your LLC in Rhode Island.
- Choose Your Tax Structure: By default, your Limited Liability Company will be taxed as a pass-through entity, but you can choose to be taxed as an S-Corp or C-Corp if that makes more sense for your situation.
- File for DBA: If you want to run your LLC under a different name than the one you registered, you’ll need to file for a “Doing Business As” (DBA) name.
- Get a Trademark: If you want to protect your business name or logo, consider applying for a trademark on the state or federal level.
- Maintain Compliance: After you’re set up, don’t forget to file annual reports and renew licenses to keep your LLC in Rhode Island active and in good standing.
Here are the possible disadvantages of starting an LLC, not just in Rhode Island but across the United States:
- Startup Costs: Forming an LLC usually costs more than a sole proprietorship or partnership. There are state filing fees and ongoing annual fees.
- Ongoing Paperwork: Most states require you to file annual reports and pay fees to keep your Limited Liability Company active.
- Self-Employment Taxes: By default, LLC members have to pay self-employment taxes on their share of the profits.
- Limited Ability to Raise Money: LLCs can’t issue stock like corporations, so it’s harder to bring on investors.
- Varying State Rules: Rules and fees for LLCs are different in every state, which can get tricky if you operate in more than one.
- Less Structure Can Cause Problems: Without clear roles and rules, especially in multi-member LLCs, misunderstandings and disputes can come up.
Forming a Limited Liability Company also has some benefits. Notable ones include the following:
- Limited Personal Liability: Your personal assets, such as your car or house, are usually protected if your business gets sued or runs into debt.
- Pass-Through Taxation: Profits go straight to your tax return—no need to pay corporate taxes first.
- Flexible Management: You can run the business yourself or bring in others to help. There aren’t a ton of rules about how it’s structured.
- Credibility: Having “LLC” in your name can make your business look more official and trustworthy.
- Fewer Formalities: Compared to a corporation, a Limited Liability Company usually involves less paperwork and fewer rules to follow.
- Profit Distribution Flexibility: You can divide profits however you want, even if it’s not based on who owns what percentage.
- Easy Startup: It’s fairly simple and quick to set up in most states—no long process or huge upfront cost.
Keeping your LLC in Rhode Island in good standing isn’t too hard, but there are a few important things you’ll want to stay on top of. Here’s a breakdown of what you need to do:
- File your Annual Report: Every year, your LLC in Rhode Island needs to file an annual report with the Secretary of State. The due date is set between February 1 and May 1 and costs $50.
- Keep Your Registered Agent Info Up to Date: Your Limited Liability Company must have a registered agent with a valid Rhode Island address. If your agent or their address changes, you must update that info with the state immediately.
- Pay Your State Taxes: Rhode Island charges an annual minimum business corporation tax of $400 for most LLCs treated as corporations. If your LLC is taxed differently (like a sole proprietorship or partnership), make sure you know what applies to you.
- Keep Good Records: Even if it’s just you running the business, keep track of income, expenses, bank statements, and any important decisions you make for the LLC. Rhode Island doesn’t require you to submit these records, but having them on hand keeps things smooth if there’s ever a question.
- Renew Business Licenses: Depending on what your LLC in Rhode Island does, you might need local or state licenses or permits. These don’t renew automatically, so double-check renewal dates so you don’t miss one.
- Stay on Top of Federal Requirements: If you have an EIN, file federal taxes, or hire employees, make sure you’re following any related IRS rules as well.
- Keep Your LLC Info Current with the State: Anytime your Limited Liability Company makes a major change, such as your business address, ownership, or the company’s name, update that info with the Rhode Island Secretary of State promptly.
Form an LLC in Rhode Island With Tailor Brands
Starting an LLC in Rhode Island shouldn’t take too much of your time and resources. Partner with Tailor Brands to ensure the process is smooth and compliant with all Limited Liability Company regulations from start to finish.
$0 + State Filing Fees