Annual Filing Requirements for Rhode Island LLC

Learn about the annual report and tax filing obligations for Rhode Island limited liability companies.

To establish and operate a Rhode Island limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Rhode Island limited liability companies.

Report Annual

The state of Rhode Island requires you to produce an annual report for your limited liability company. Blank report forms may be downloaded from the SOS website. To finish the yearly report, you’ll need to give information like:

The state-issued entity ID number for your LLC
the precise name of your LLC a short explanation of the nature of your LLC’s company
the LLC’s major office location and the LLC’s official mailing address and contact person the names and addresses of all LLC managers (if any)\s any changes affecting your LLC’s resident agent name or address, and\s a few other basic facts.

The annual report must be submitted each year between September 1 and November 1 of the year after the year of the LLC’s formation, with the exception of new LLCs, which do not have to file a report until the first year after they are formed. The application cost is $50. There is a penalty cost for late reporting.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay federal income taxes by default; only its members do. However, Rhode Island charges a minimal business corporation tax on ordinary LLCs (those not choosing to be taxed as corporations; see below). The yearly tax is $400. To pay this tax to the Department of Taxation (DOT), use Form RI-1065.

In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Rhode Island, like almost every other state, has a corporate income tax. The company tax in Rhode Island is normally 7% of net income, with a $400 minimum tax. To pay this tax, use the state’s company income tax return (Form RI-1120C).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in Rhode Island, however, must additionally pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOT. Begin by registering your company with the DOT online (you will be completing Form BAR, Business Application and Registration Form). After you’ve enrolled, you must submit withholding taxes on a regular basis. Each year, you’ll also need to utilize a form of Form RIW3 to reconcile your LLC’s tax withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The Employer Tax Section of the Rhode Island Department of Taxation is in charge of these taxes. You may register for these taxes online (by filling out Form BAR). Then, using form TX-17, you’ll record your salary and pay your UI taxes each quarter.

Taxes on Sales and Use

If your LLC sells items to clients in Rhode Island, you must collect and remit sales tax. This implies you’ll have to register with the Department of Taxation for this reason and then make periodic sales tax payments for products sold. You may sign up online. After you register, you will get a retail sales permit. Then, you must submit sales tax returns to the DOT on a regular basis (typically monthly or quarterly).

Other States Registration

If you want to do business in states other than Rhode Island, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.