How to Start an LLC in Rhode Island (2026 Guide)
Rhode Island charges $150 to form your LLC — a moderate fee. But there's a number almost no other state has: a mandatory $400 annual charge, owed every single year regardless of income, paid to an entirely different state agency than your $50 annual report. Understand this before you form here.
To start a Rhode Island LLC, file Articles of Organization with the Rhode Island Department of State, Business Services Division for $150 by mail or $156 online, with online processing in 1–3 business days (mail takes about 2 weeks). Every LLC then files an annual report ($50) with the Secretary of State, due between February 1 and May 1 each year. Separately, every Rhode Island LLC — including single-member LLCs — owes a mandatory $400 annual charge to the Division of Taxation, regardless of income or business activity. State income tax is graduated, topping out at 5.99%, and sales tax is a flat 7% with no local add-ons.
- State filing fee
- $150 ($156 online)
- Processing time
- ~1–3 business days online
- Annual report
- $50 · due Feb 1–May 1
- Mandatory annual charge
- $400/yr — separate agency
- Income tax
- Graduated, tops out at 5.99%
- Sales tax
- Flat 7% — no local add-ons
What to Know Before You Form in Rhode Island
Rhode Island isn't a hard state to form in — the process is standard. But its ongoing cost structure is genuinely different from most of this series, and worth understanding clearly before you commit:
- A moderate $150–$156 formation fee — nothing unusual, filed with the Business Services Division.
- A $50 annual report — filed with the Secretary of State, reasonably priced on its own.
- A mandatory $400 annual charge — paid separately to the Division of Taxation, owed by every LLC regardless of income, including single-member LLCs with zero revenue.
- A flat 7% sales tax with no local add-ons — high by national standards, but at least simple to calculate anywhere in the state.
The single most important thing to understand about Rhode Island: your LLC owes two separate recurring payments to two separate agencies — a $50 annual report to the Secretary of State, and a $400 annual charge to the Division of Taxation. Combined, that's $450 every year, regardless of whether your LLC made a single dollar. This puts Rhode Island's true ongoing cost among the highest of any state in this series, and it genuinely surprises founders who only budgeted for the $50 report they saw mentioned first.
How to Start a Rhode Island LLC in 8 Steps
Your name must be distinguishable from every Rhode Island entity and contain "Limited Liability Company" or "L.L.C." Search free through the Department of State.
Rhode Island's term for a registered agent — an RI resident or authorized entity with a physical in-state street address.
File the Articles of Organization
$150 by mail or $156 online — the filing that creates your LLC. Online approval typically takes 1–3 business days.
Not required by Rhode Island, but it overrides state default rules and satisfies your bank.
Get Your Free EIN from the IRS
Your federal tax ID for banking, hiring, and Rhode Island Division of Taxation registration. Always free at IRS.gov.
File Your Annual Report AND Pay the $400 Charge
Two separate obligations: $50 to the Secretary of State (Feb 1–May 1), plus a mandatory $400 to the Division of Taxation.
Get Business Licenses & Permits
No statewide general license — but sales tax registration, local permits, and professional board licenses as applicable.
Understand Rhode Island LLC Taxes
A graduated income tax topping out at 5.99%, the mandatory $400 minimum tax, and a flat 7% sales tax with no local layer.
What a Rhode Island LLC Really Costs (2026)
| Cost Item | Amount | When |
|---|---|---|
| Articles of Organization (required) | $150 ($156 online) | One-time, at formation |
| Annual report (required) | $50 | Every year, Feb 1–May 1 |
| Mandatory annual charge (required) | $400 | Every year, regardless of income |
| Resident agent service (optional) | $100–$150/yr | Annual, if hired |
| Name reservation (optional) | $50 | One-time hold |
| DBA / trade name (optional) | $50 | If operating under another name |
| EIN from the IRS | $0 — always free | At IRS.gov |
Bottom line: $150–$156 to form, then $450/yr minimum to maintain ($50 report + $400 mandatory charge) — one of the highest recurring costs in this entire series. Model your exact setup below.
Rhode Island LLC Cost Calculator
Rhode Island LLC Cost Calculator
First-year + 5-year totals · verified July 2026
Includes the mandatory $400/yr charge, which applies regardless of income. Excludes state income tax and local permits.
Two Fees, Two Agencies — Don't Miss Either One
This is worth its own section because it's the single most common point of confusion in Rhode Island: your LLC has two separate annual obligations, filed with two separate state agencies. The $50 annual report goes to the Secretary of State$400 annual charge goes to the Division of Taxation and applies as a minimum tax — Rhode Island requires this even from single-member LLCs that would be treated as disregarded entities with no separate filing requirement in most other states. Missing either one carries real consequences. See Step 6 for the full breakdown of both.
Rhode Island LLC Taxes at a Glance
Default LLCs pass profits to your personal return, taxed at Rhode Island's graduated rate topping out at 5.99% for income above roughly $139,400. Add federal self-employment tax of 15.3% on 92.35% of net profit. Beyond personal income tax, every LLC also owes the mandatory $400 minimum tax discussed above. Sellers collect a flat 7% sales tax — one of the highest state rates in the country, though with no local additions anywhere in the state. Details in Step 8.
Ahmad Adil's Take: I want to be completely upfront with anyone considering Rhode Island: this is not a cheap state to maintain an LLC in, and the $400 mandatory charge is the reason why. It's not a penalty, it's not something you can avoid with good planning — it's simply the cost of having an LLC registered here, every year, whether you're profitable or not. If you're actually building a business in Rhode Island, that's a real, known cost you can plan around. But if you're comparing states purely on cost and Rhode Island isn't where you're actually operating, this $400 figure is worth weighing seriously against what neighboring states charge for the same ongoing compliance.
- ✓Forms your Rhode Island LLC for $39 + the $150 state fee
- ✓Files online with the Department of State
- ✓Free Rhode Island resident agent the first year
- ✓No upsells · No data selling · Privacy by Default
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Rhode Island LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $150 Articles of Organization, the $50 annual report, and Rhode Island’s mandatory $400 annual charge — reflect current Rhode Island Department of State and Division of Taxation guidance. This is educational content, not legal or tax advice.
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