General Guide to Company Incorporation in Rhode Island
Updated on Wednesday 25th April 2018
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Rhode Island or the Ocean State, as it is known, has important exits to the Atlantic Ocean which make the trading sector a prolific one, considering the business relations across the Ocean. We have prepared a general guide to company incorporation in Rhode Island and we invite you to find out details about how you can set up a business in this state. Our company incorporation agents in USA can offer in-depth information about the registration process with the authorities and the requirements in this sense.
How to start an LLC in Rhode Island
The suitable business form in Rhode Island can be the limited liability company which can be incorporated at the Business Division of the Secretary of the State of Rhode Island. The main documents of such entity are the Articles of Association which contain information like:
• the name and the nationality of the owners of the new company;
• the name of the company after a verification in this sense;
• the type of the activities of the new business in Rhode Island;
• the name of the appointed registered agent of the company;
• the business address of the limited liability company in this state;
• the board of managers and the effective date when the business enters the market.
If you would like to appoint a registered agent for your LLC in Rhode Island, you can talk to our team of advisors who can help you in this sense. Moreover, it is good to know that another company may act as a registered agent for a business in Rhode Island.
Create an operating agreement for your LLC
If you want to start a company in USA, it is recommended to sign an operating agreement, an internal document which offers information about the liabilities of the owners, their voting rights, the capital contributions in the firm, working relations between members and details about how the dissolution is made.
How can I obtain the EIN for my company?
The EIN (Employer Identification Number) is issued by the Internal Revenue Service (IRS) and represents the federal tax ID which demonstrates that the company is a taxpayer. In this matter, a business bank account and the company’s documents are necessary when applying for EIN in Rhode Island.
Taxes in Rhode Island
The sales tax in Rhode Island is set at 7%, and the income tax ranges between 3.75% and 5.99% as follows:
|3,75%||up to USD 60.550|
|4,75%||between USD 60,551 - 137,650|
|5.99%||over USD 137,651|
The property tax is imposed on personal assets in Rhode Island and collected by the municipality where the company is established.
Licenses and permits for your business in Rhode Island
The Chamber of Commerce and the Small Business Administration are two important authorities which issue the necessary licenses for business owners in Rhode Island, in compliance with the governments’ rules and regulations. Instead of wondering what type of license you need before opening a company in USA, it is best to address your inquiries to our team of advisors.
Do I need the services of an accounting firm in Rhode Island?
Yes, it is mandatory to ask for complete accounting services in Rhode Island for your new company. Payroll, bookkeeping, the annual financial statements, tax advice and tax minimization methods are a few of the important accounting matters suggested for any type of business in USA.
Legal conditions for hiring staff in Rhode Island
If an investor decides to hire local or foreign workforce, a verification in this matter is necessary, to see if the future employees can work in the USA. The next step is to register the employees with the authorities in charge and to pay the social contributions and the taxes in this sense.
Economy facts about Rhode Island
The economy in Rhode Island has a solid engine and that is textile industry, shortly followed by the fishing sector which is also extremely developed, considering the location of this state. Providence is the capital of Rhode Island and a significant business center which hosts numerous large companies from abroad. Newport, Bristol, Warwick, Westerly and Cranston are important cities in Rhode Island where foreign investors can easily set up their operations.
If you would like to know more about the company formation in USA and the conditions at the time of registration, we invite you to contact our team of company incorporation specialists in USA.