An Overview Of Paying Taxes For A Rhode Island LLC

In the state of Rhode Island, once you have set up an LLC, you may wonder about how you will pay your taxes. Limited liability companies are their own separate entity, and act as pass-through entities, which means the owner of the LLC is responsible for paying taxes. In the same way that you would determine how much you would have to pay if you are a sole proprietor, this is exactly how you determine what you must pay for state and federal taxes. You must also submit an annual report to the state of Rhode Island that will include a state-issued entity ID number, the name of your LLC, an overview of your business, and many other details. Let’s discuss more paying taxes if you have an LLC in Rhode Island.

State And Sales Taxes For LLCs In Rhode Island

The state taxes that you will pay, not including the $400 annual tax that you are responsible for in Rhode Island for having the LLC, will depend on the number of sales that you have made. Since Rhode Island uses a corporate tax of a flat 7%, you will submit this money to the state by Form RI-1120C when you pay your taxes. Likewise, if you have employees, you must pay employer taxes. You will of course have to have an EIN number from the IRS which is necessary when you have employees. Once you have assessed how much these taxes are, you will then submit that money on Form TX-17. Finally, since you are selling products or services from your company, through the LLC, you also have to pay sales taxes. These will be sent to the Department of Taxation making periodic payments.


Paying Taxes LLC Rhode Island


What If You Don’t Have An LLC?

To file for an LLC in Rhode Island, if you would like to have one, begins with registering the name of the LLC itself. This can be accomplished by going to the Rhode Island Secretary of State website, and you will then verify that your name is available in the business name database. Using Form 620, which is the Reservation of Entity Name form, you can then pay to reserve that name. Subsequent to that, you must also find a registered agent that you can use to receive all of your legal documents from the state. It is also advantageous to have a physical place of business that you can list where the LLC is located. Finally, you will need to list the members and managers that will be part of this limited liability company.

Completing Your Articles Of Organization

In Rhode Island, the Articles of Organization form that you submit to the Rhode Island Department of State is called Form 400. It is on this form that you will this the information that has been discussed. The name of the LLC, the name and address of the registered agent, and the members, managers, and authorized person that is signing the form must be listed. In addition to this, you need to state how the LLC will be treated in regard to federal tax purposes. The principal office of the LLC will be listed, and you must define whether this is a manager-managed or a member-managed LLC. Finally, the date when the LLC will become active should also be listed. This will be sent to the Rhode Island Department of State with a $150 fee. Over the course of just a few days, they will evaluate this document, and then a proven set up your limited liability company.

Final Thoughts On Creating An LLC In Rhode Island

This is likely the best decision that you can ever make if you have a business in Rhode Island. As long as you are paying your taxes on time, as well as the fee for having the LLC, this will be of great benefit. The protection of your personal assets is just one of the many reasons that people will have limited liability companies created. You can do this either on your own or with the help of a professional business, yours can be set up in a matter of days as long as you follow the simple steps presented.

The taxes that you will pay with your LLC are going to be the same that you would if you did not have one. That is because a limited liability company is a separate entity that acts as a pass-through entity. It is this separation between you and your business, and the LLC itself, the provides you with legal protection for your assets. This is why people set up limited liability companies if they want to protect everything that they have earned when battling people suing them in a court of law. If you need more information about setting one of these up, you can always find a reputable business that can go through the entire process with you, or simply create and submit the documents for you to create your LLC.

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