Registration Requirements in Rhode Island
You may be required to register your business with the Rhode Island Secretary of State. Some businesses may be required to re-register annually. More information can be found on their website below.
Certain businesses may also be required to file with the Rhode Island Department of Revenue. More information can be found on their website below.
S Corporation Tax
Rhode Island recognizes the federal S-election, and Rhode Island S corporations are not required to pay income tax to the state. However, individual S corporation shareholders will owe state tax on their share of the company’s income. S corporations are subject to a minimum fee of $400. S corporations file their return on Form RI-1120S, found below.
LLCs and partnerships are not required to pay income tax to Rhode Island. Instead, income from the business is distributed to individual LLC members or partners, who then pay Rhode Island income tax on that amount with their personal return. LLCs and partnerships are required to pay an annual fee of $400 to Rhode Island. Partnerships file on Form RI-1065, found.
Rhode Island allows for pass through entities with qualified nonresident members to file a composite tax return on their behalf. In order for a qualified nonresident member to be included in the composite return, they must complete form RI-1040C-NE, found at the link below.
Pass through entities file composite returns on Form RI-1040C, found at the link below.
Individual Income Tax
Rhode Island individual income tax is calculated based on Rhode Island taxable income.
Individuals with income assignable to Rhode Island may be required to file a Rhode Island individual Income tax return.
Income rates are as follows:
S corporation, partnership, and composite returns are due on or before the 15th day of the 3rd month following the close of the taxable year.
Individual income tax returns are due on the 15th day of the fourth month following the close of the tax year.
If the date falls on a weekend or holiday, the due date is the following business day.
Filing An Extension
S corporations and partnerships can request a six month extension using form RI-7004:
Composite filers can request a six month extension using form RI-4868:
Individuals can request a six month extension using form RI-4868C:
Pass through entities should make estimated payments using form R_1040C-ES these payments are made at the highest income tax rate of 5.99%.
Individuals who can reasonably expect to owe $250 or more in tax must make estimated payments using form RI-1040ES:
Rhode Island may impose a failure to file a timely return at a rate of 5% per month, up to a maximum of 25% of the tax due.
If your business was formed or is located in another state, but generates income in Rhode Island, it may be subject to Rhode Island taxes. The rules for taxation of multistate businesses, including what constitutes nexus with a state for the purpose of various taxes, are complicated. If you run such a business, you should consult with a tax professional.
Rhode Island Department of Revenue:
Rhode Island Secretary of State: