How to Register a business in Rhode Island: A Step-by-Step Guide

Starting a business in Rhode Island is exciting, but it’s important to make sure everything is set up properly from the beginning. This guide walks you through each step, from picking a name to registering with the state. Whether you’re launching a side hustle or opening a storefront, here’s what you need to do to get your business registered in Rhode Island.

Step 1: Choose Your Business Name

Before you register anything, you’ll need to make sure your business name is available. Use the Rhode Island Business Name Search tool to check for existing businesses with the same or similar name.

• Your name must be unique
• It can’t be too similar to an existing business
• Avoid restricted words like “bank,” “insurance,” or “university” unless you have special approval

It’s also a good idea to check if the domain name is available if you plan to build a website.

Step 2: Pick a Business Structure

You’ll need to decide how your business will be structured. Here are some common options:

• Sole Proprietorship: Easiest to set up, but no liability protection
• LLC (Limited Liability Company): Offers protection and flexibility, popular with business owners
• Corporation: Best for businesses with investors or multiple shareholders
• Partnership: For businesses with two or more owners

Most business owners go with an LLC because it’s affordable and provides liability protection.

Step 3: Register Your Business with the State

If you’re forming an LLC, corporation, or partnership, you’ll need to register with the Rhode Island Department of State. You can file online through the state’s Business Services portal.

• LLCs: $150 filing fee
• Corporations: $230 filing fee
• Sole Proprietors: Usually register at the city or town level

You’ll need to provide your business name, address, a registered agent, and information about your business activities.

Step 4: Get an EIN from the IRS

An EIN (Employer Identification Number) is required if you plan to:

• Hire employees
• Open a business bank account
• File federal or state business taxes

You can apply for an EIN online through the IRS website. It’s free and only takes a few minutes.

Step 5: Register with the RI Division of Taxation

Depending on what your business does, you may need to register with the Rhode Island Division of Taxation. This applies if you:

• Sell products or taxable services
• Have employees
• Need to collect or pay sales tax

You can register through the Rhode Island Business Tax Portal. From there, you can apply for a sales tax permit, withholding account, or other tax-related items.

Step 6: Check Local Requirements

Each city or town may have its own permits or licenses you’ll need. Common examples include:

• Health department licenses (for food service businesses)
• Sign permits
• Home occupation permits (for businesses run out of your home)

Visit your local city or town’s website or call their office to find out what you’ll need to operate legally.

Step 7: Open a Business Bank Account

Once your business is registered and you have your EIN, open a business bank account. This helps keep your business finances separate from your personal finances.

To open an account, most banks will ask for:

• Your EIN
• Business registration paperwork
• A valid photo ID

Step 8: Keep Up With Compliance

After registering, there are a few things you’ll need to stay on top of:

• File your annual report with the Secretary of State
• Renew any local licenses each year
• Stay current with tax filings

Annual reports are due each year and can be submitted online through the Secretary of State’s website.

Final Thoughts

Getting your business registered in Rhode Island is a big first step. Once you're set up, you’ll be able to focus more on growing your business and less on paperwork. If you're not sure where to begin or need help reviewing your setup, The Sassy Bookkeeper offers free consultations for businesses across Rhode Island and Massachusetts.