The Complete Guide to Rhode Island Business Licenses
Rhode Island does not have a general business license. Sellers need a retail sales permit from the Division of Taxation, contractors register with the state, and cities and towns license specific activities. This guide explains each step for a new Rhode Island business.
Step 1: Form the LLC
File Articles of Organization with the Secretary of State for $150. LLCs file a $50 annual report and pay the $400 minimum tax. See the Rhode Island LLC guide for every formation step.
Step 2: Permit to Make Sales at Retail
Register with the Division of Taxation. The retail sales permit has been free since July 1, 2022, when the $10 fee was removed, but it must still be renewed every year. The sales tax rate is 7%. One combined registration also sets up employer accounts.
Step 3: City and town licenses
Cities and towns license specific activities. In Providence, the Board of Licenses issues licenses such as food, entertainment and alcohol through an online portal. Check zoning before you sign a lease.
Step 4: Contractor registration
Contractors register with the Contractors' Registration and Licensing Board. Registration costs $150 and needs $500,000 of liability insurance, workers' compensation if you have employees, and a 5-hour pre-registration course. Contractors doing only commercial work are exempt.
Hiring staff and DBAs
One combined online registration covers withholding with the Division of Taxation and unemployment insurance, TDI and the Job Development Fund with the Department of Labor and Training. A DBA is filed with the city or town clerk where you do business, for $10.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $150; $50 annual report |
| Retail sales permit | Division of Taxation | Free; renewed yearly |
| Contractor registration | Contractors' Registration and Licensing Board | $150 |
| DBA | City or town clerk | $10 |
Frequently Asked Questions
Does Rhode Island require a business license?
No. Rhode Island has no general business license. Sellers need a Permit to Make Sales at Retail, and cities and towns license specific activities.
How much is a Rhode Island sales permit?
It is free. The $10 fee was removed on July 1, 2022, but the permit must still be renewed every year.
Do contractors need to register in Rhode Island?
Yes. Registration with the Contractors' Registration and Licensing Board costs $150 and needs insurance and a 5-hour course.
How much does it cost to form an LLC in Rhode Island?
The Articles of Organization cost $150, the annual report is $50 and the minimum tax is $400 a year.
Where do I file a DBA in Rhode Island?
With the city or town clerk where you do business; the fee is $10.