Starting a Sole Proprietorship in RI: A Guide

A sole proprietorship is one of the most popular business formats in Rhode Island for new entrepreneurs. The simplest and most adaptable sort of business entity is a sole proprietorship, which is a company owned and run by only one person. This information will help you get started.

1. Decide on a name Choosing a name for your business is the first step in establishing a sole proprietorship. Either use your real name or think of a distinctive company name. Make sure no other company in Rhode Island is already using the name you chose for your company. On the website of the Rhode Island Secretary of State, you can look for business names.

After deciding on a name for your company, you must register it with the Secretary of State’s office in Rhode Island. Online or postal registration is available for businesses. The enrollment cost is $10. Additionally, you’ll need to acquire any licenses or permits your business may require. For instance, the Rhode Island Department of Environmental Management may require landscapers to have a license.

3. Obtain an ID number for tax purposes. You must request an IRS tax ID number as a lone proprietor. Also known as an Employer Identification Number (EIN), this number. Applying for an EIN is possible online, by mail, or by fax. This number will be used to open a business bank account and file your taxes.

You can begin operating as a sole proprietor in Rhode Island as soon as you’ve finished these steps. You’ll be personally liable as a sole proprietor for all facets of the business, including any debts or potential legal problems. It’s crucial to maintain accurate records and keep your personal and professional finances separate.

The process of founding a corporation in Rhode Island is a little more complicated than starting a sole proprietorship. The basic steps are as follows:

1. Pick a name and submit your articles of incorporation The first step in creating a corporation is naming your company and submitting your articles of incorporation to the Secretary of State’s office in Rhode Island. There is a $230 filing fee.

3. Create bylaws and call a meeting to organize

You must write your corporation’s bylaws and call an organizational meeting to adopt them and choose officers.

5. Submit a yearly report

Costs Associated with Forming an LLC in Rhode Island

In Rhode Island, an LLC must pay a filing cost of $150. 2. The registration fee

Operating Contract

3. It’s a good idea to have an operating agreement for your LLC even though it’s not legally obligatory. Depending on how complicated your company is, an operating agreement will cost you a different amount.

These are the fundamental expenses related to forming an LLC in Rhode Island. However, additional expenses can be necessary depending on the nature of your company and any licenses or licences you require.

There are a few other charges related to incorporating an LLC in Rhode Island in addition to the ones mentioned above. Here’s what to anticipate:

LLCs must file an annual report with the Secretary of State’s office in Rhode Island. An annual report filing fee is $50.

2. Business Permit

You might need to apply for a business license from the state of Rhode Island or from municipal authorities depending on the type of business you are running. Depending on the sort of business, a business license will cost a different amount.

Sole proprietorship, corporation, and limited liability company formation in Rhode Island all require distinct procedures and fees. To make sure you’re adhering to all the legal and financial regulations, it’s crucial to do your research and speak with a lawyer or accountant.