Forming an Rhode Island LLC

(2025 Guide)

2025 LLC Guide

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How to Start an LLC in Rhode Island (Step-by-Step Guide)

Discover how to start an LLC in Rhode Island, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in Rhode Island, submit the Articles of Organization to the Rhode Island Secretary of State. This process incurs a fee of $150 and requires 4 days for approval.

There are 5 essential steps to complete:
Choose an LLC Name
Select a Registered Agent
File Articles of Organization
Create an Operating Agreement
Obtain an EIN

If you prefer to set up your LLC independently, follow our complimentary guide below. Alternatively, if you’d like professional assistance, we suggest hiring Northwest Registered Agent.

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

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

The initial cost to set up an LLC is $150, followed by an annual fee of $50. What do these fees cover? The $150 fee is for filing the Articles of Organization, which is the document that officially forms the LLC. The $50 annual fee is for the Annual Report, a required submission to maintain your LLC’s good standing. For more details, visit LLC Costs in Rhode Island.

How long does it take to form an LLC in Rhode Island?

If you submit your LLC application by mail, it will be processed in 3-4 business days, plus mailing time. However, if you file online, approval will also take 3-4 business days. For updates on processing times, please refer to How long does it take to get an LLC in Rhode Island.

Here’s how to establish an LLC in Rhode Island

1. Check Your LLC Name

Start by checking the availability of your LLC name within the state. It’s crucial because no two businesses in the state can share the same name.

Begin by searching your desired business name and comparing it to those already established in the state. You can confirm that your chosen LLC name is unique by using the Rhode Island Business Records Search.

Next, acquaint yourself with the state’s naming guidelines to ensure your LLC is approved. We’ll provide more detailed information here: Rhode Island LLC Name.

Note: 

Most people choose “LLC”.

2. Select a Rhode Island Registered Agent

The following step involves selecting a Registered Agent. A Rhode Island Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Rhode Island Limited Liability Company.

Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:

You
A friend or family member
A Registered Agent Service

Rhode Island mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.

If you lack an address in Rhode Island or desire increased privacy, you can opt for a Registered Agent Service for your LLC.

We suggest Northwest Registered Agent

One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.

Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. Submit LLC Articles of Organization


To establish an LLC, you’ll need to submit the Articles of Organization to the Rhode Island Secretary of State.

Filing these Articles online costs $150, which is a one-time fee for setting up your LLC. If you prefer to handle this on your own, refer to our detailed guide: Rhode Island Articles of Organization. Alternatively, you can opt to hire a service to manage it for you.

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Draft an LLC Operating Agreement

An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.

Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.

Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Rhode Island Operating Agreement video for a step-by-step guide on how to complete it.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Obtain an EIN for Your LLC

The following step is to secure a Rhode Island EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.

An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits

How much does an EIN cost? The IRS provides an EIN at no charge.

How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.

How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.

What should I do after my LLC is approved?

Once your LLC is approved, there are some subsequent actions to take.

Open a business bank account for your LLC

Maintaining a separate account simplifies accounting and record-keeping, ensuring your financial records are organized. Additionally, having a distinct business account preserves your personal liability protection by keeping business and personal finances separate.

Acquire business licenses and permits

Fortunately, Rhode Island doesn’t require a general state business license. However, depending on your location, a local business license or permit might be necessary. For instance, starting a daycare may require a city or county business license. More information is available on our Rhode Island Business License page.

File your LLC Annual Report

Every Rhode Island LLC must submit an Annual Report each year. This ensures your LLC remains in good standing with the state. The filing fee for the Rhode Island Annual Report is $50 annually. The report is due by May 1st each year. Your first Annual Report is due the year after your LLC is approved. For example, if approval was on February 18, 2025, your first report is due by May 1, 2026. Reports can be filed online or by mail, with online submissions being simpler. Check out our step-by-step guide here: Rhode Island LLC Annual Report.

File and pay taxes

LLCs aren’t subject to federal taxes on business income directly. Instead, members pay taxes on their share of the income as part of their personal income tax returns. By default, the IRS taxes LLCs based on ownership: a Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, the IRS can tax your LLC as a C-Corporation or S-Corporation. Beyond federal taxes, state and local taxes, including sales tax, apply. Learn more in Rhode Island LLC Taxes.

Helpful Resources

If you have any questions about filing your LLC, you can contact the PA Bureau of Corporations and Charitable Organizations. Their number is 717-787-1057. And their hours are 8:00am – 4:45pm, Monday to Friday, Eastern Time.

How to Start an LLC in Rhode Island FAQs

Can I start an LLC online in Rhode Island?

Yes, you can submit your LLC online in Rhode Island. The Articles of Organization filing fee is $150. When you file online, your LLC will typically be approved within 3-4 business days.

One of the primary advantages of an LLC is the protection of personal assets. This means that if your business faces a lawsuit, your personal assets—such as your home, vehicles, and bank accounts—are safeguarded. This protection covers all LLC owners, whether it’s a Single-Member LLC or a Multi-Member LLC. All members are shielded from the business’s debts and liabilities. This level of protection isn’t available with a Sole Proprietorship or Partnership, where owners have no such protection in case of legal action. This is why LLCs are a more favored business structure.

Another benefit is pass-through taxation. The LLC itself doesn’t pay federal income taxes. Instead, profits are passed through to the LLC Members, who then report the income on their personal tax returns. State income taxes in Rhode Island follow a similar pattern, as the Rhode Island Department of Revenue aligns with federal tax treatment for LLCs. Thus, the state’s taxation mirrors that of the federal level. For more details, see How are LLCs taxed.

The suitability of Rhode Island for starting an LLC depends on where you live and do business. If you reside or conduct business in Rhode Island, it is advisable to start your LLC there. Although many sources highlight the tax benefits of certain states, these advantages don’t apply if it’s not where you live and operate. For instance, forming an LLC in Delaware while living and working in Rhode Island means you’ll need to register your Delaware LLC in Rhode Island, incurring additional fees and still paying Rhode Island taxes. This results in extra costs and complications without benefits. In conclusion, if you live and do business in Rhode Island, it’s a good state to start a business. Otherwise, it isn’t ideal.

Real estate exception: If you’re buying real estate outside Rhode Island, establish your LLC in the state where the property is located. For more insights, see Best State to Form an LLC.

The key differences between Domestic LLCs, Foreign LLCs, and Professional LLCs lie in their formation location and business purpose. A Domestic LLC is formed in its “home state,” where the owner lives and conducts business. For example, if you live and do business in Rhode Island, you’d create your Domestic LLC there.

A Foreign LLC is established in a state other than its home state. Here, “foreign” simply indicates the LLC is foreign to its home state. For instance, if you expand your Rhode Island LLC into Connecticut, you’d register it as a Foreign LLC in Connecticut. LLCs are state-level entities, so conducting business in multiple states requires forming or registering in each. This involves creating a Domestic LLC in your home state and a Foreign LLC in the other.

A Professional LLC (PLLC) is designed for offering “professional services.” Here, “professional” pertains to business types needing special licenses, registrations, or certifications to operate legally, such as architects, lawyers, social workers, doctors, and veterinarians. More on PLLCs, their availability, and stricter requirements can be found in: What’s a Professional LLC? For further information on Foreign and Domestic LLCs, see: Foreign LLCs by State and Difference between Domestic LLCs and Foreign LLCs.

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