StructureCost2026

Rhode Island: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $3,807 a year less than a sole proprietorship in Rhode Island. All figures are 2026 tax and fees.

$3,807 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Rhode Island, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Rhode Island, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $25,233 $0
Itemized: $25,233
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxtax.ri.gov, checked Oct 23, 2026$2,868
Yearly cost$25,233
Single-member LLC $25,530 +$297 $150
Itemized: $25,530
Annual Report (Form 632)docs.sos.ri.gov, checked Oct 23, 2026$50
Rhode Island LLC annual chargetax.ri.gov, checked Oct 23, 2026$400
Self-employment taxirs.gov, 2026 rates$14,066
Federal income taxirs.gov, 2026 rates$8,161
State income taxtax.ri.gov, checked Oct 23, 2026$2,853
Yearly cost$25,530
LLC taxed as an S corp lowest $21,426 −$3,807 $150
Itemized: $21,426
Annual Report (Form 632)docs.sos.ri.gov, checked Oct 23, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,535
State disability and paid leavedlt.ri.gov, checked Oct 23, 2026$440
Payroll service and tax return (estimate)$1,800
Rhode Island S corporation minimum taxtax.ri.gov, checked Oct 23, 2026$400
Rhode Island pass-through entity tax, paid by the company (elected)web.archive.org, checked Oct 23, 2026$3,251
Federal income taxirs.gov, 2026 rates$8,950
Yearly cost$21,426
S corporation $21,426 −$3,807 $230
Itemized: $21,426
Annual Report (Form 630)docs.sos.ri.gov, checked Oct 23, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,535
State disability and paid leavedlt.ri.gov, checked Oct 23, 2026$440
Payroll service and tax return (estimate)$1,800
Rhode Island S corporation minimum taxtax.ri.gov, checked Oct 23, 2026$400
Rhode Island pass-through entity tax, paid by the company (elected)web.archive.org, checked Oct 23, 2026$3,251
Federal income taxirs.gov, 2026 rates$8,950
Yearly cost$21,426
C corporation $30,652 +$5,419 $230
Itemized: $30,652
Annual Report (Form 630)docs.sos.ri.gov, checked Oct 23, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,535
State disability and paid leavedlt.ri.gov, checked Oct 23, 2026$440
Payroll service and tax return (estimate)$2,000
State corporate income taxtax.ri.gov, checked Oct 23, 2026$3,813
Federal corporate income tax (21%)irs.gov, 2026 rates$10,639
Federal income taxirs.gov, 2026 rates$4,791
State income taxtax.ri.gov, checked Oct 23, 2026$2,384
Yearly cost$30,652
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Rhode Island

Electing S corp tax treatment for an LLC starts to pay in Rhode Island at about $52,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Rhode Island can elect to pay the state's income tax itself, a pass-through entity tax of 5.99%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalweb.archive.org.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,610$5,947$7,777$8,122
$50,000$10,858$11,188$11,513$13,769
$75,000$17,492$17,823$14,850$21,091
$100,000$25,233$25,530$21,426$30,652
$150,000$42,627$42,921$36,248$51,781
$200,000$60,658$60,967$51,940$72,278
$300,000$105,051$105,189$86,448$114,853

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Rhode Island

LLCCorporation
Filing to form$150Articles of Organization (Form 400)$230Articles of Incorporationdocs.sos.ri.gov
Yearly reportAnnual Report (Form 632), $50 a yearAnnual Report (Form 630), $50 a yeardocs.sos.ri.gov
Report dueBetween February 1 and May 1Between February 1 and May 1
Rhode Island LLC annual charge$400yesnotax.ri.gov
Rhode Island S corporation minimum tax$400if taxed as S corpS corp onlytax.ri.gov

Not in the calculator: No local income taxes. Cities and towns levy tangible personal property tax on business equipment, with an exemption for the first $50,000 of value.

Switching calculators for Rhode Island

By profession in Rhode Island

Questions

Is an S corp worth it in Rhode Island?

On these figures, from about $52,500 of profit. At $100,000 an LLC taxed as an S corp costs $21,426 a year against $25,530 for a plain LLC, $4,104 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Rhode Island?

The state charges Annual Report (Form 632), $50 a year. LLCs can also owe Rhode Island LLC annual charge. Forming one costs $150.

Does Rhode Island recognise the S corp election?

Yes. The federal election carries over with no separate state form. Rhode Island follows the federal S election; the S corporation pays the $400 minimum and income passes through to shareholders.

What income tax does Rhode Island charge?

Rhode Island taxes personal income in 3 brackets, from 3.75% to 5.99% (2026, single filer). C corporations pay 7% of net income, with a minimum of $400.

How this page models Rhode Island (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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