There is no charge to file Articles of Organization in Rhode Island. If you want to form a limited liability company (LLC), you must pay a $100 filing fee plus $25 per member. You must pay the filing fee regardless of whether you choose to pay with cash or check.
The state fees vary depending on the number of members in the company. For example, a single member LLC costs $350; three members cost $1,200; five members cost $2,500; ten members cost $5,000; twenty members cost $10,000; thirty-five members cost $15,000; fifty members cost $20,000; seventy-five members cost $30,000; one hundred members cost $40,000; and one hundred and fifty members cost $50,000.
You can register online or pay by mail with a check. To do it online, go to www.rifiregistration.com/llc/register.htm. Be sure to include the name of your LLC, the date of formation, and the amount of membership you wish to purchase. If you use a credit card, make sure the billing address matches the information on file with the Secretary of State.
Table of Contents
How Much Does a Rhode Island LLC Cost?
Starting an LLC is relatively cheap compared to corporations and partnerships but requires extra paperwork. In addition to the initial $100 fee, you must pay annual renewal fees ranging from $50-$200. If you want to avoid paying those fees, consider forming a limited liability company (LLC). This entity type is similar to an LLC but doesn’t require annual filings. Instead, the state collects taxes based on the number of shareholders.
The cost of setting up an LLC depends on how many members you have. A single member LLC costs $100 to form; three members cost $300 each; five members cost $500 each; 10 members cost $1,000 each; 20 members cost $2,000 each; 30 members cost $3,000 each; 40 members cost $4,000 each; 50 members cost $5,000 each; 60 members cost $6,000 each; 70 members cost $7,000 each; 80 members cost $8,000 each; 90 members cost $9,000 each; and 100 members cost $10,000 each.
If you want to start a small business, consider creating an LLC rather than a corporation. Corporations require much more money upfront and ongoing legal fees.
Fee for the Rhode Island Annual Report: $50
The Rhode Island Board of Elections requires annual reports to be filed electronically or by mail. If you fail to file within 10 days of the due date, you are subject to a late filing penalty of 50 cents per day up to a maximum of $50. Payment must be made either online or by mailing a check payable to “Board of Elections.”
Resident Agent Fee
Northwest Registered Agent offers two packages for $39 plus state fees if you want to hire a resident agent and $125 if you just need one.
The price to create a foreign LLC in Rhode Island
If you are interested in forming a foreign limited liability company (LLC), there are some things you need to know about it. First off, you cannot do it online. In fact, you cannot even do it in person. You must go to the Secretary of State’s office and pay $150 to start the process. Once you have registered your foreign LLC, you still have to file annual reports and pay taxes.
You can register a foreign LLC in Rhode Island by filling out form 450. This form requires information like the name of the foreign LLC, address, phone number, email address, and type of entity. If you want to incorporate in Delaware, you can use form 700.
Registering a foreign LLC is very different from registering a domestic LLC. For one thing, you don’t have to set up a separate bank account. Instead, you can deposit money into the account of the foreign LLC. Also, you cannot transfer ownership of assets to the foreign LLC unless you are transferring them directly from another LLC.
The good news is that once you have filed your forms, you can operate your foreign LLC just like any other LLC. You can open a bank account, hire employees, buy equipment, etc. You can also sell shares to investors.
Business Permits and Licenses
Depending on your industry and geographic location, you may need licenses to operate legally, and there are two main types of licenses: federal and state.
State licenses cover everything else, including business permits, occupational licensing requirements, and taxes. Some states require businesses to obtain a license before starting operations; others do not. For example, some states allow restaurants to serve alcohol without a liquor license, while others require one.
There are three basic types of business licenses:
• Commercial – Other A commercial license allows a business to sell goods or provide services to the public. Examples include retail stores, gas stations, hotels, car dealerships, bakeries, construction companies, landscaping firms, etc.
• Specialty – A specialty license covers certain industries such as cosmetology, interior design, accounting, engineering, architecture, landscape architecture, real estate, dentistry, veterinary medicine, optometry, pharmacy, law, massage therapy, health care administration, dental hygiene, nursing, physical therapy, psychology, social work, speech pathology, veterinary science, veterinary technology, veterinary medicine, veterinary assisting, veterinary radiology, veterinary surgery, veterinary ophthalmology, and veterinary nutrition.
• Professional – A professional license requires special training or education to perform a particular job. Examples include barbers, chiropractors, doctors, lawyers, engineers, accountants, architects, and nurses.
Other LLC Filing Costs
The filing process varies depending on what type of entity you are forming. If you are creating a sole proprietorship, you do not need to file anything. A partnership requires filing Articles of Organization with the Secretary of State. An S corporation needs to file an IRS Form SS-4. You must pay the filing fees for each form.
LLC name reservations cost $50 + $0.15 per page.
A limited liability company (LLC) is a legal structure used for businesses that want some protection against personal liability. In addition to protecting owners from lawsuits, it allows members to contribute money to the company without losing ownership of their individual shares.
An operating agreement governs how the company operates. This document does not require a separate filing with the state. However, it does require a special notice to shareholders.
You can use your LLC’s DBA (Doing Business As) name. The DBA name is your assumed business name. For example, if you sell widgets under the name “Widgets Inc.,” you could register Widgets Inc. as a DBA name.
If you decide to incorporate, you will need to file Articles of Organization with the secretary of state. To protect yourself, you might consider incorporating as an S Corporation. The S Corp tax code provides certain benefits to small businesses.
Certificate of good standing costs $22 + $ 0.30 per page. When you apply for a certificate of good standing, the secretary of state verifies that you are the business owner. They also check to make sure that no liens exist against the business.
Frequently Asked Questions
Is an LLC necessary?
An LLC offers many benefits, including protecting you personally in case of a lawsuit or unpaid debt, and limiting liability in the event of a lawsuit. But there are some downsides. For example, it takes longer to establish an LLC than a corporation does. Also, you must file paperwork and pay fees every year. And while an LLC doesn’t protect your personal assets, it does limit your personal exposure in the event of a legal claim against the company.
What’s better: sole proprietorship or LLC?
A sole proprietorship is only useful for small businesses that do not anticipate having many lawsuits against them. Sole proprietors are responsible for everything that happens within the company. They must pay taxes themselves and file tax returns each year. If the business fails, it could mean personal bankruptcy.
An LLC offers limited liability protection. Liability coverage protects owners and managers from being sued personally for anything that goes wrong while operating the business. This includes claims related to products sold or services rendered. In addition, members of an LLC are protected under federal law if there is ever a lawsuit over something like product safety.
If you’re looking for a legal structure that provides both liability protection and taxation benefits, consider setting up an LLC.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.