How to Start an LLC in Rhode Island

(February 2025)

How-to-Start-an-LLC-in-Rhode-Island

In This Article

Introduction

By the time you finish reading this article, you’ll be armed with all the knowledge you need to successfully launch your very own Rhode Island LLC. The entrepreneurial spirit is alive and thriving in the Ocean State, with thousands of new businesses forming as limited liability companies (LLCs) over the past few years.

If you want to dive into the world of entrepreneurship and establish your own venture, Rhode Island is where it’s at. This article has your back, taking you through every step from checking if your desired business name is up for grabs to handling all the necessary paperwork and keeping your LLC in good standing down the road.

Fees? Rhode Island’s initial filing fees for LLC formation might be a tad higher than what you’d find elsewhere, clocking in at $150. It’s not a deal-breaker, but it’s something to factor into your budget. Plus, don’t forget about the annual report requirement. Depending on your LLC’s assets, that fee can range from $50 to $480. Keep those numbers in mind as you plan your LLC journey.

SUMMARY

1. Confirm the Availability of Your Desired LLC Name
2. Reserve Your LLC’s Name (Optional)
3. Appoint a Registered Agent
4. Prepare and File Your LLC’s Articles of Organization
5. Create an Operating Agreement
6. Obtain an Employer Identification Number (EIN)
7. Obtain Licenses & Open a Business Bank Account
8. File Reports, Pay Fees & Comply with Rhode Island Tax Requirements
Recap

1. Confirm the Availability of Your Desired LLC Name

To confirm the availability of your desired LLC name, conduct a business entity search through the Rhode Island Secretary of State’s website. You don’t want to go through the entire formation process only to find out that another company is already operating under the same or a similar name.

Head over to the Rhode Island Secretary of State’s website and fire up their business entity search tool. It’s your key to scanning through all the existing LLCs, corporations, and other registered groups in the state.

If your ideal name pops up as available, awesome! You’re good to dive into the formation process. But if it’s already taken or too similar to something that’s already out there, don’t sweat it. Time to tweak your choice or brainstorm a fresh name for your LLC.

2. Reserve Your LLC's Name (Optional)

To reserve your LLC’s name, submit a Reservation of Entity Name form or complete the process online. While not a mandatory step, reserving your chosen LLC name can be a wise move, especially if you’re not quite ready to file your formation documents immediately.

If you want to lock in your LLC’s name in Rhode Island, here’s what you have to do: Fill out the Reservation of Entity Name form or hop online to complete the process. It’ll cost you $50 for this service, but once it’s approved, you’ve got your chosen name secured for a cool 120 days.

3. Appoint a Registered Agent

To appoint a registered agent, consider serving as your own agent, appointing an LLC member or manager, or hiring a professional registered agent service. Every LLC operating in Rhode Island is required to have a registered agent. Lots of businesses prefer this route. It adds an extra layer of privacy and ensures that all your important docs are in safe hands. Costs usually range from $49 to $300 a year. You need someone to handle all the legal paperwork and important notices for your Rhode Island LLC. Here are your options:

Here’s the thing: Your registered agent address is public info in Rhode Island, which can attract spam and scams. Hiring a registered agent service keeps that address private and filters out the junk, leaving you free to focus on your business.

4. Prepare and File Your LLC's Articles of Organization

To prepare and file your LLC’s Articles of Organization, ensure you have all necessary information and consider hiring a formation company for assistance. This document officially establishes your LLC and provides essential details about your business.

The Articles of Organization must include the name of your LLC, the LLC’s principal office address, the name and address of your registered agent, whether your LLC will be managed by members or managers, the name(s) and address(es) of the LLC’s member(s) or manager(s), the effective date of your LLC’s formation (if different from the filing date), the purpose of your LLC (if not stated, it will be considered a general business purpose) and the duration of your LLC (if not perpetual)

Ready to get your LLC set up? You can do this online or by sending in a hard copy to the Division of Business Services. Easy peasy! Pay the filing fee of $150. You can use a check, money order, cash, or credit card if you’re filing in person.

If you’re forming an LLC from outside Rhode Island but planning to operate within the state, don’t forget to include a Certificate of Good Standing or Letter of Status dated within 60 days of filing. Want some extra help? Consider hiring a formation company. Plus, they usually offer a flat fee with a guarantee your filing will be accepted. Bonus: they’ll store your documents online for you.

5. Create an Operating Agreement

To create an operating agreement for your LLC, outline the rules and procedures for your LLC’s operation, covering important aspects such as member responsibilities and dispute resolution. While Rhode Island doesn’t legally require it, it’s really smart to whip up an operating agreement for your LLC.

This agreement? It’s like your business’s playbook. It covers all the important things like who’s in charge of what in the LLC, how the money is divided up – who gets what, bringing new folks on board or changing ownership, how decisions get made – voting rules.

Sorting out fights between members and, worst-case scenario, how to wrap things up if the LLC calls it quits.

6. Obtain an Employer Identification Number (EIN)

To obtain an Employer Identification Number (EIN) for your LLC, apply online for this unique identifier for tax purposes. An EIN, also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax purposes.

While single-member LLCs without employees are not legally required to obtain an EIN, it’s generally recommended to do so. An EIN can help protect your personal identity and credit by separating your business and personal finances, and it’s also necessary for certain tasks, such as hiring employees or opening a business bank account.

Obtaining an EIN is a straightforward process that can be completed online, by fax, or by mail. The application is free, and you’ll typically receive your EIN immediately if you apply online.

7. Obtain Licenses & Open a Business Bank Account

To open a business bank account, gather necessary documents and choose a bank that suits your LLC’s needs and preferences. To effectively manage your Rhode Island LLC’s finances, it’s essential to open a separate business bank account after obtaining your EIN. This segregation of personal and business finances ensures legal and financial compliance and streamlines accounting and tax processes.

When setting up the account, gather necessary documents such as the LLC’s Articles of Organization, operating agreement, EIN confirmation letter, and personal identification. Explore various banks and account options to find the best fit for your LLC’s requirements and preferences. Additionally, ensure compliance by obtaining the required licenses and permits specific to your industry and location, including local business licenses, sales tax permits, professional licenses, and zoning permits.

8. File Reports, Pay Fees & Comply with Rhode Island Tax Requirements

To maintain your LLC’s good standing with the state of Rhode Island, you’ll need to file an annual report and pay the associated fees. Make sure to file your LLC’s annual report between February and May to keep the state’s records accurate.

Remember, there’s a $50 filing fee, plus an extra $2.50 for online filing, but be mindful of a $25 late fee if you miss the June 1 deadline, which also increases the online filing fee to $3.

Additionally, depending on your LLC’s structure, you might have other fees like the Rhode Island Minimum Business Corporation Tax, starting at $400 annually.

Recap

To successfully start your Rhode Island LLC, begin by checking the availability of your desired business name through the Secretary of State’s website. Consider reserving your name for a fee if you’re not ready to file immediately. Appoint a registered agent to handle legal paperwork, and prepare and file your Articles of Organization with the Division of Business Services.

Create an operating agreement to outline your LLC’s operations and responsibilities. Finally, obtain an Employer Identification Number (EIN), open a business bank account, and ensure compliance with annual reporting requirements and tax obligations to maintain your LLC’s good standing in Rhode Island.

Related Articles

Become a

S'witty Kiwi Credit Insider!

Get the latest credit tips and hacks in your inbox!