Although the exact requirements can differ based on the type of business you operate, there are some necessary steps to follow when starting a business in Rhode Island. Following these guidelines ensures that your business is correctly registered and adheres to the regulations of the state of Rhode Island.
Step 1. Select a Business Entity Name
Every new business entity (other than general partnerships and sole proprietors) must register with a unique business name. You need to verify the availability of a name by doing a search with the corporate database of the Rhode Island Department of State. To learn more about name availability, you can refer to the name availability guidelines provided by the Rhode Island Department of State. If you open a partnership or sole proprietorship under your legal name, you do not have to register it. However, if you choose to call it something else, then you need to file a “doing business as” (DBA) with the state.
Step 2. Choose a Business Structure
When starting a business, it is important to choose the appropriate type of business entity. The type of entity determines how you will file taxes. The most common business structures include sole proprietorships, partnerships, corporations, S-corporations and LLCs. It is important to be aware of both legal and tax considerations when selecting a business structure.
Step 3. Appoint a Registered Agent
Along with a business name and structure, a registered agent is also required to register your business with the Rhode Island Department of State. A registered agent is responsible for receiving official and legal documents on behalf of your business. The agent must either be a resident of Rhode Island or a qualified entity authorized to conduct business in the state. The registered agent must also possess a physical address in Rhode Island and be accessible at that address during regular business hours to accept service of legal documents.
Step 4. Provide Proof of Insurance/Board Approval
Professional service corporations and professional service benefit corporations must provide evidence of liability insurance during the registration process. State laws have certain insurance exclusions and limits, as outlined in R.I. Gen. Laws Chapter 7-5.1. If you plan to register your business online, you will need to have a scanned PDF of your liability insurance proof (policy declaration page) ready for upload.
In the case of entities offering engineering services, obtaining prior approval from the Board of Registration for Professional Engineers is mandatory. If you plan on registering your business online, make sure you have a scanned PDF of your approval letter prepared for upload.
Step 5. Register Your Business Entity
The most commonly used business structures in the state of Rhode Island include LLCs, corporations, benefit corporations, workers’ cooperatives, general partnerships and sole proprietors. If you are classified as a general partnership or sole proprietor, you do not need to register with the Department of State. In this case, you will need to contact the city or town you wish to do business to determine if you need any local permits or licenses.
You can learn more about business structures and register your business on the Rhode Island Department of State website or by mail. Electronic filing documents are provided for your convenience. State filing fees vary depending on the legal business entity.
Corporation: $230 for the Department of State filing fee, $50 for the Department of State annual report and $400 for the Division of Taxation minimum corporate tax.
Limited Liability Company: $150 for the Department of State filing fee, $50 for the Department of State annual report and $400 for the Division of Taxation minimum corporate tax.
Workers’ Cooperative: $230 for the Department of State filing fee, $50 for the Department of State annual report and $400 for the Division of Taxation minimum corporate tax.
Benefit Corporation: $230 for the Department of State filing fee, $60 for the Department of State annual report and $400 for the Division of Taxation minimum corporate tax.
A certificate of good standing from the state of Rhode Island must accompany your application, along with additional licenses and permits depending on your business. Upon registration, state filing fees can be paid by mail or in person via check, credit card or cash to the following address:
Rhode Island Department of State
Business Services Division
148 W. River Street
Providence, RI 02904
You may also visit the Business Services Division website for further information.
Step 6. Confirm Filing
Entity records are retrievable and viewable through the Rhode Island Department of State website. Registration filings that cannot be confirmed are posted online and then returned. To confirm your submission was successful, you must search for your entity by visiting the corporate database. Processing time can take between one and three business days.
Step 7. Get an EIN
Businesses, particularly those with employees, are typically required to apply for a federal employer identification number (EIN) from the IRS. This unique identifier is necessary for the IRS to monitor your business’s income and payroll tax obligations and payments. Additionally, an EIN can be used to identify your business for state and local tax requirements, as well as for various financial transactions.
Step 8. Register with the Rhode Island Division of Taxation
All businesses registered with the Rhode Island Department of State are responsible for paying the state’s minimum corporate tax, either $400 or 7% of the business income, whichever is higher. Even if no business was conducted or no profit was made in a particular year, there are still filing requirements and tax is still owed.
You can pay your taxes through the Division of Taxations taxpayer portal, as well as apply for a letter of good standing or renew a tax license. If you do not have employees or make retail sales, an account is created for you when you file your tax return. If you have employees or make retail sales, you will need to create a sales and/or unemployment tax account by completing the Division of Taxation’s business application and registration (BAR) form online.
Step 9. Maintain Your Business in Good Standing
If your business was formed in another state or country and you are now registering it in Rhode Island in order to do business there, you must include a certificate of good standing or a letter of status from the state or country where the entity was formed. This document must be dated within 60 days of the filing date.
Additionally, the entity is required to submit an annual report each calendar year, except for the year of incorporation, between February 1 and May 1. As a courtesy, a reminder will be sent to the registered agent prior to February 1 each year. It is important to communicate with your registered agent to ensure the timely filing of this report. If you fail to file an annual report or maintain a registered agent, it may result in revocation proceedings.
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Publish date : 2024-08-07 00:03:00
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