Rhode Island LLC, Corporation, and DBA Startup Guide
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
Rhode Island Business Facts and Environment
Rhode Island Business Facts
Rhode Island is currently at the bottom in terms of its business environment. However, there is hope for Rhode Island if the government works on amending its taxation system, forming new industries, fixing the transport system, and improving its state regulations.
Major Companies Headquartered in Rhode Island
Rhode Island is the headquarters of many major companies including CVS Health, Textron, Lifespan, Applied Bio-Systems, and Citizens Bank.
Startup Environment
Despite the slow economic growth in Rhode Island, the state has the potential to improve its startup environment. At present, some of the major industries in Rhode Island are biomedicine, shipbuilding, manufacturing, and data analytics.
Rhode Island LLCs, Corporations, and DBAs
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later, but it’s much easier in the long run if you can stick to the original business name). In Step 3 we’ll show you how to search for the name in Rhode Island, but we highly recommend you do the following before searching Rhode Island state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Rhode Island Business Entity Database and doing a name search on the State of Rhode Island website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
NOTE: Familiarize yourself with the Rhode Island naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Rhode Island Business Name & Business Purpose
- Business names should be unique.
- Rhode Island corporate names may have the following approved designations:
- Co.
- Company
- Corp.
- Corporation
- Inc.
- Incorporated
- Limited
- Ltd.
- P.C.
- PC
- The use of the following words and phrases in corporate names is considered “restricted” in Rhode Island:
- Architect
- Banking
- College
- Engineering
- University
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Rhode Island.
How to Form an LLC in Rhode Island
- File the “Articles of Organization” with the Rhode Island Secretary of State LLC Division.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Rhode Island
- File the “Articles of Incorporation” with the Rhode Island Secretary of State Corporate Division.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Rhode Island is currently taking to process regular and expedited orders.
How to File a DBA in Rhode Island
- Check the state database of business names.
- Complete the Fictitious Business Name registration form.
- The filing fee is $50.
Optional Considerations when registering a Rhode Island business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent)
Ready to register a business in Rhode Island?
- We specialize in registering businesses in Rhode Island.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Find out how we can process your Corporation or LLC paperwork for you.
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if you we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and ask about the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN, and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Rhode Island
- Citizens Bank
- Bank of America
- Santander Bank
- The Washington Trust Company
- Bank Rhode Island
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. You’ll need to develop a system for processing orders, paying bills, employees, taxes, maintaining your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 2 years, with an option for renewal.
LLC: Rhode Island corporations are required to file a Periodic Report with the Rhode Island Secretary of State by November 1 each year, in addition to general taxation. Information on your business’ taxes can be found here.
Corporation: Businesses in Rhode Island should file a report annually by March 1 to the Division of Corporate and Consumer Services. LLCs and Corporations will pay a filing cost of $52.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
Important Rhode Island Contacts
Rhode Island Secretary of State
Business Portal (for Corporation and LLC filings)
148 West River Street
Providence, RI 02904-2615
Phone: 401-222-3040
Rhode Island Taxation Departments
Rhode Island Labor and Employment Departments
Rhode Island Startup Resources
1. Small Business Administration (SBA) Rhode Island District Offices
2. SCORE Rhode Island
- Rhode Island SCORE provides FREE, confidential counseling to small businesses.
3. Rhode Island Legal Statutes:
- Rhode Island Business Corporation Act – note this is the broad code that includes various other topics including Rhode Island’s business corporations.
- Rhode Island Limited Liability Company Act – the specific act that applies to Rhode Island LLC’s.
- Rhode Island Businesses and Professions – this includes regulations on topics such as business and professions codes.
4. Rhode Island Chambers of Commerce
- Northern Rhode Island Chamber of Commerce
- Greater Providence Chamber of Commerce
- Central Rhode Island Chamber of Commerce
- Southern Rhode Island Chamber of Commerce
- Charlestown Chamber of Commerce
- This gateway is designed to help you access the tools that you will need to plan, start, and maintain your business or non-profit.
6. Rhode Island Angel Investors
7. Rhode Island Business News
8. Rhode Island Commerce Corporation
- Commerce RI’s mission is to work with public, private and non-profit partners to create the conditions for businesses in all sectors to thrive and to improve the quality of life for our citizens by promoting the State’s long-term economic health and prosperity.
9. Rhode Island Small Business Development Center
- The Rhode Island Small Business Development Center (RISBDC) at the University of Rhode Island provides local small business owners and entrepreneurs with the services, expertise and resources they need to thrive, including no-cost, one-on-one business counseling to start, grow and maintain their businesses.
10. Department of Environmental Management
- The Rhode Island Department of Environmental Management is committed to preserving the quality of Rhode Island’s environment, maintaining the health and safety of its residents, and protecting the natural systems upon which life depends.
