Incorporate In Rhode Island

Even with the 6th smallest population, “The Ocean State” attracts entrepreneurs looking to do business in industries such as education, healthcare and manufacturing.

Formally called the State of Rhode Island and Providence Plantations, it has the longest official name of all American states and was first of the original colonies to declare independence from British rule.

Benefits of incorporating in Rhode Island:

Protection of personal assets

When incorporating in the Rhode Island, foreign entrepreneurs should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Ability to open bank account

Forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considered you more qualified as a vendor.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

Rhode Island requires that C corporations and LLC not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a unique C corp or LLC name. A distinctive corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

The state of Rhode Island allows businesses to form as C corps or LLCs. The type of business entity you choose determines the nature of the taxes imposed on your business. Under Rhode Island law corporate taxes are either based on a firm’s net income or levied according to the income tax return of its members.

Residency Requirements

Rhode Island does not have any residency requirements. Owners and directors do not need to live in state to legally operate a Rhode Island company. Before your firm is legally eligible to operate make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

Rhode Island C corps and LLCs must have at least one director/member. The state requires that the names and addresses of managers must be listed in the LLC’s filing documents. C corps do not need to disclose that information.

Requirements for forming an LLC in Rhode Island:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

Rhode Island LLC names must end with the term “Limited Liability Company” or the abbreviations “LLC” and “L.L.C..” Entrepreneurs looking to start companies that contain the terms “Banking,” “Architect,” “College,” “Engineering,” “University” or any variations of these words must seek special authorization from the state.

LLC filing requirements

Rhode Island-based LLCs are required to file a formation document called Articles of Organization. LLCs must submit annual report due by November 1st. The filing fee for the annual report is $50.

Required information for the Article of Organization

The Articles of Organization must include the name and address of a registered agent who resides in Rhode Island and who is available to manage legal and tax business documentation. For more help with the incorporation filing or registered agent services feel free to contact Inc. Plan (USA).

LLC taxes and fees

For state tax purposes, Rhode Island LLCs are taxed based on federal taxes. LLCs can elect to be taxed as partnerships or a C corps. C corps are taxed based on a business net income. LLCs are taxed based on the personal income of its members.

Requirements for forming a C corporation in Rhode Island:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Rhode Island are as follow:

Name requirements for C corporations

Companies incorporated in Rhode Island must have a unique name. C-corps and are allowed to use endings like “Company,” “Corporation,” “Incorporated” or “Limited,” along with their abbreviations. If a business wishes to use the terms “Banking,” “Architect,” “College,” “Engineering,” “University” or any variations of these words in the name of a business then they must obtain special approval from the state.

Filing requirements in Rhode Island

Firms incorporated in Rhode Island are required to file a formation document called the Articles of Incorporation with the state. Corporations are required to submit an annual report which is due on March 1s.

Required information for the Article of Incorporation

Articles of incorporation are required to list the company’s authorized shares along with their assigned par value. Entrepreneurs must also include the name of a registered agent with a physical address in Rhode Island. Increases in the number of shares may affect the initial filing fees. Inc. Plan (USA) can help you with the necessary filings and also with qualified registered agent service.

Taxes and fees requirements

Rhode Island imposes three types of taxes on C corps. C Corps can qualify for either a corporate income tax which is 9% of the net income, a franchise tax based on the capital stock value or a minimum $500 tax.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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