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Rhode Island · 2026 · 37 steps · official links

How to start a business in Rhode Island

Every step to open an LLC in Rhode Island and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State (Business Services) · Division of Taxation · Department of Labor and Training (DLT) · Office of the General Treasurer (RISavers) · Office of Child Support Services.

LLC filing fee
$150
State sales tax
7%
Seller's permit
Free
Out-of-state sales threshold
$100,000 or 200 sales
Last verified
October 27, 2026

This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.

Customize this checklist

Popular Rhode Island business types:

Step 1

Set up the business with the state

Do this first. The state tax and payroll accounts ask for your registration details.

Get a federal EIN

Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.

FederalFreeIRS: Get an EIN

Sign an operating agreement

This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.

Every state

Open a business bank account

Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.

Every state

Check industry licenses and permits

Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.

  • Trades and construction: general contractors, electricians, plumbers, HVAC and roofers usually need a state or local license, and often a bond
  • Personal services: salons, barbers, nail and esthetics shops need a shop license plus licensed staff; massage and tattoo studios are licensed too
  • Professional services: accounting, engineering, architecture, law, real estate and insurance require state licenses for the people and sometimes the firm
  • Child care, elder care and home care need a state facility or agency license and background checks
  • Retail with restricted products: alcohol, tobacco and vape, cannabis, firearms (federal FFL), pawn and secondhand dealers
  • Auto, transport and logistics: auto dealers and repair shops, towing, movers, and trucks that need a USDOT number
  • Money and finance: lenders, mortgage brokers, debt collectors and money transmitters are licensed by the state, often through NMLS
  • Local permits for almost everyone: city business license or tax registration, zoning or home occupation permit, sign permit and fire inspection

Decide on S corp tax treatment (optional)

If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.

Form your LLC with the state

File Articles of Organization (or the state's equivalent) online through Secretary of State Business Services online filing.

Name a Rhode Island registered agent

Changing the registered agent or its address costs $20.

RI

Register a trade name (DBA) if you use a different name

LLCs file a fictitious business name statement with the Secretary of State for $50.

RIIf it applies$50

Know Rhode Island's formation rules

Corporation fees are a $70 filing fee plus a $160 license fee (for under 75,000,000 authorized shares). Foreign corporations pay $150 plus the $160 license fee.

RI
Step 2

Register for state taxes

Register with Division of Taxation

Register online with the Division of Taxation's Business Application and Registration (BAR). One form covers the retail sales permit, income tax withholding, and the unemployment and TDI accounts.

  • Employees complete Form RI W-4 for state withholding
  • 7% statewide sales and use tax. Retail sales permits expire June 30 each year; renew through the Tax Portal.

Check local taxes and business licenses

No local income or payroll taxes. Restaurants and bars collect a 1% local meals and beverage tax on top of the 7% sales tax.

RI

Renew your sales permit every year

Retail sales permits expire June 30. Renewal applications are due by February 1 through the Tax Portal.

Step 5

Collect sales tax

Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.

Register to collect sales tax

Rhode Island calls it a Sales and Use Tax Permit (Permit to Make Sales at Retail). Register with the Rhode Island Division of Taxation through Division of Taxation Taxpayer Portal, or the Business Application and Registration (BAR) form before you make your first taxable sale in Rhode Island. You'll collect tax from customers and send it to the state.

  • State rate: 7%
  • Local taxes: No general local sales taxes. Restaurants and bars also collect a 1% local meals and beverage tax.
  • Renews every year; permits expire June 30 and renewal applications are due by February 1.
  • Most services are not taxed, but telecom, cable TV, certain utility services and a list of specific services are taxed.
RIFree. The old $10 permit fee was eliminated for permit periods starting on or after July 1, 2022.Rhode Island: Register for sales tax

Buy items you resell tax-free with a resale certificate

Give your supplier Rhode Island Sales and Use Tax Resale Certificate so you don't pay tax on inventory you'll resell. The buyer must list its own Rhode Island permit number; the MTC certificate is accepted only for items resold in the same form, not for other exemptions. Keep certificates your own customers give you, too.

  • Accepts the Streamlined Sales Tax multistate certificate
  • Accepts the MTC Uniform Sales and Use Tax Resale Certificate

Selling into Rhode Island from another state? Watch the threshold

Out-of-state sellers must register once sales into Rhode Island pass $100,000 or 200 transactions (previous calendar year), even with no office here.

  • Gross revenue from sales of products and services into Rhode Island counts. Either test triggers registration.
  • Marketplace facilitators with $100,000 in sales or 200 transactions into Rhode Island must register and collect the 7% tax.

Note this Rhode Island sales tax rule

A separate 6% hotel tax applies to lodging.

RI
Step 6

Before your first payroll

Applies once you pay W-2 employees who work in this state.

Complete Form I-9 and W-4 for each hire

Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.

  • The employee completes Section 1 by their first day of work
  • You review their original documents and complete Section 2 within 3 business days of the start date
  • Keep it for 3 years after the hire date or 1 year after employment ends, whichever is later
  • Store I-9s together, separate from personnel files, so an inspection doesn't expose other records
  • Remote hire? Have an authorized representative check documents in person, or, if you use E-Verify, use the DHS remote video inspection option
  • Also collect a federal W-4 for withholding

Post federal workplace notices

Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.

Register for unemployment insurance with Department of Labor and Training (DLT)

Register once you pay wages to employees working in Rhode Island. Reports and payments are usually quarterly.

  • 2026 new employer rate: 1.21% (includes the 0.21% Job Development Assessment)
  • Taxable wage base: $30,800 ($32,300 for highest-rate employers)
  • 2026 uses Schedule F, with rates from 0.9% to 9.4%. Register for UI and TDI through the Division of Taxation BAR form.

Set up the state paid leave or disability program

Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI) are paid by employees through payroll deduction. The 2026 rate is 1.1% on the first $100,000 of wages, down from 1.3% in 2025. Employers withhold and remit it.

  • 2026: 1.1% employee-paid on up to $100,000 (maximum $1,100 per year)
  • TDI pays up to 30 weeks for your own illness or injury
  • TCI pays up to 8 weeks to bond with a new child or care for a family member
  • Siblings were added as covered family members
  • Wage replacement is slated to rise to 70% in 2027 and 75% in 2028 (2025 law)

Buy workers' compensation insurance

Required at 1 or more employees. Individual owners and partners are exempt. Corporate officers are covered unless they file a DWC-11 waiver. Fines are up to $1,000 per day without coverage, and going uninsured is a felony. Post the required workers' comp notice.

Report each new hire

Report new hires and rehires online at ri-newhire.com, or fax the W-4. Independent contractors generally do not need to be reported.

Follow Rhode Island pay timing rules

Rhode Island's wage payment rules:

  • Pay frequency: Weekly for most employers. Certain nonprofits and other approved employers may pay twice a month.
  • Final pay: Quit or fired: by the next regular payday. If the business closes, merges, is sold, or leaves the state: within 24 hours. Earned vacation is owed after 1 year of service.
  • Overtime: 1.5x for hours over 40 per week. Most retail and other businesses must also pay 1.5x for Sunday and holiday work (health care, hospitality, and some others are exempt).
  • Give a pay stub every payday showing hours worked and all deductions, even for cash pay.

Pay at least Rhode Island minimum wage

$16.00 an hour.

  • Tipped employees: $3.89 (tips must bring pay to $16.00)
  • Coming up: $17.00 on January 1, 2027

Set up required sick leave

Employers with 18 or more Rhode Island employees must provide paid sick and safe leave. Smaller employers must provide the leave but it can be unpaid. Employees earn 1 hour per 35 hours worked, up to 40 hours per year.

  • 1 hour per 35 hours worked
  • Up to 40 hours per year
  • Under 18 employees: job-protected but may be unpaid
  • Optional waiting period of up to 90 days for new hires
  • Unused leave carries over, but use is capped at 40 hours per year

Register for RISavers (RI Secure Choice) or certify an exemption

Employers with 5 or more employees that do not offer a retirement plan must join RISavers; employers with a plan must certify an exemption. Deadlines are phased: 100+ employees by Oct 15, 2026; 50 to 99 by Oct 15, 2027; 5 to 49 by Oct 15, 2028. The penalty is $250 per eligible employee after a 30-day notice.

Adopt a harassment policy (training recommended)

Rhode Island doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.

RIIf it applies

Post Rhode Island workplace notices

Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.

RIFree

Withhold TDI from day one

Rhode Island's disability and caregiver insurance is paid entirely by employees. Withhold 1.1% of wages up to $100,000 in 2026 and remit it with your UI filings.

Pay premium for Sunday and holiday work

Most Rhode Island businesses must pay at least 1.5x for work on Sundays and holidays. Health care, hospitality, agriculture, and commercial fishing are among the exceptions.

Step 7

Paying 1099 contractors

Collect a W-9 before the first payment

The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.

Send Form 1099-NEC to contractors

File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).

FederalDue Jan 31
Step 8

Stay in good standing

Recurring deadlines. Put these on your calendar now.

Skip the FinCEN BOI report (U.S. companies are exempt)

FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.

Plan for your RISavers deadline

Employers with 5 or more employees and no retirement plan must join RISavers by their wave deadline. Employers with 50 to 99 employees are due October 15, 2027.

File the Annual Report

Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.

RI$50 (LLC and corporation)Rhode Island: Annual report

File quarterly unemployment reports and withholding returns

File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.

RIQuarterly

File sales tax returns on time

Returns are due monthly by the 20th for the prior month; businesses averaging under $200 a month in tax can be approved to file quarterly, due the last day of the month after the quarter. File a zero return if you had no sales; skipping it can bring penalties.

RI

Deadline calendar

Recurring dates for Rhode Island and federal filings. A payroll service handles most payroll lines, but you should know they're happening.

WhenWhatFiled with
Jan 1Minimum wage rises to $17.00 (2027)Rhode Island
Feb 1Retail sales permit renewal due (permits expire June 30)Rhode Island
20th of each monthMonthly sales and use tax returnRhode Island
Oct 15RISavers deadline by wave (50 to 99 employees in 2027; 5 to 49 in 2028)Rhode Island
Jan 31W-2s to employeesRhode Island
Assigned scheduleSales tax return (file a zero return if no sales)Rhode Island
Jan 31W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941IRS / SSA
Jan 311099-NEC to contractors and IRSIRS
15th monthlyFederal payroll tax deposit (monthly depositors)IRS
Apr 30 · Jul 31 · Oct 31Form 941 for the quarterIRS
Jul 31Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension)DOL (EFAST2)

Last verified: October 27, 2026

Common questions

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

The Rhode Island state filing fee for an LLC is $150. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.

Do I need a seller's permit in Rhode Island?

You need to register to collect sales tax in Rhode Island if you sell taxable products or services there. The state rate is 7%, and local taxes may add to it. Registration cost: Free.

When does an out-of-state business have to collect Rhode Island sales tax?

Out-of-state sellers must register once their sales into Rhode Island pass $100,000 or 200 sales a year. Having an employee or office in Rhode Island also creates nexus right away.

What does a Rhode Island business have to file after it opens?

Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.

Checklists for every state

This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.