We’re heading on over to the Ocean State for today’s 50 States segment to find out how to incorporate in Rhode Island!
Rhode Island is the smallest state in the United States, and even then, this tiny state is about 14% water due to all of its bays and inlets. Despite its petite size, RI is still one of the most densely populated of the 50 states. That means lots of small business owners, especially when it comes to the healthcare and tourism industries the state is known for.
Unfortunately, despite brands like CVS Pharmacy and Playskool calling the state home for their headquarters, Rhode Island is ranked as #48 out of 50 in the Forbes Best States for Business list. Much of this can be attributed to the steep property, personal income, and corporate income tax rates. While starting a business in Rhode Island does offer up the benefit of the quality of life provided, the state’s unemployment rate comes in at 8.9%. However, labor costs are still about 6% below the national average – a rarity in the typically pricey Northeast.
If you feel like the Ocean State is the best place for you and your small business, be sure to keep these LLC-specific rules in mind when you incorporate in Rhode Island:
- When forming your LLC, you’ll need to include some variation of ‘Limited Liability Company’ somewhere in your company’s name.
- You can get a preliminary name check done by searching the Name Availability Database, or you can call the Corporations Division at the Secretary of State’s office.
- If you’d like to do business in Rhode Island, but your office isn’t physically in the state, you can become a foreign limited liability company. You just need to file an Application for Registration with the Secretary of State by mail. You have to also pay a fee, have a business name that follows all of RI’s regulations, have a registered agent located in Rhode Island, and provide a certificate of good standing from your home state that is newer that sixty days.
- Your registered agent can be a resident of Rhode Island, a domestic business, or a foreign company registered to do business in Rhode Island.
- The Articles of Organization that you will fill out require you to enclose how you intend to be treated for federal tax purposes.
We can help you get your small business started in Rhode Island! Give us a call at 1 (877) 692-6772 or leave a comment below!