Rhode Island (RI) levies a 7% state sales tax, making it essential for businesses to understand collection and remittance obligations. As of 2026, the LLC filing fee is $150 with no annual franchise tax.
Economic Nexus in Rhode Island
Remote sellers must collect Rhode Island sales tax if they exceed $100,000 in annual sales or 200 transactions within the state. This threshold has been in effect since 2019-07-01. Marketplace facilitators like Amazon and Etsy are also required to collect and remit tax on behalf of third-party sellers. The Rhode Island Division of Taxation enforces these provisions and provides registration guidance at https://tax.ri.gov.
LLC Formation in Rhode Island (2026)
Forming an LLC in Rhode Island costs $150 for the initial filing. There is no annual franchise tax, keeping ongoing costs low. The annual report fee is $50. Rhode Island imposes a state income tax, which affects pass-through LLC taxation.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts. You will also need a sales tax permit from the Rhode Island Division of Taxation.
Key Tax Rules
• Rhode Island has a 7% state sales tax with no local additions.
• Clothing and footwear under $250 are exempt.
• Groceries and prescription drugs are exempt.
• Economic nexus: $100,000 in sales or 200 transactions.
Sales Tax Exemptions
The following categories are generally exempt from sales tax in Rhode Island: groceries, clothing, prescription drugs, medical devices. Businesses should maintain proper documentation for exempt transactions.