Add Arrows Legal Rhode Island Startup for Sole Proprietorship Forms For Free

We recommend applying for an EIN online if you have a SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number). This is the easiest filing method and it has the fastest approval time. Your EIN Number will be issued at the end of the online application, which takes about 15 minutes to complete.

Rhode Island sales tax overview The Rhode Island (RI) state sales tax rate is currently 7%. Rhode Island is one of the few states with a single, statewide sales tax.

A company doing business in a state other than its formation state will have to register with that state as a foreign entity before transacting business there. If a company plans to operate in multiple states, it must undergo the registration process in every state where it is doing business.

When you begin to engage in business activities outside your formation state, you're likely to hear the term “doing business”. “Doing business” refers to the process of carrying on the normal activities of a business in another state on a regular basis or with substantial contacts — not just an occasional shipment.

No documentation is required to create a sole proprietorship. A sole proprietorship differs from a limited liability company (LLC) in: the documentation required for formation.

Once you start a business, you automatically become a sole proprietor in California. But you should still take steps to start your sole proprietorship, including choosing a business name, applying for licenses and permits, and obtaining an EIN.

Review the steps below to take the necessary actions. Choose a business name. File an assumed business name. Obtain licenses, permits, and zoning clearance. Obtain an EIN and a BIN if hiring employees. Prepare to pay taxes as a sole proprietor.

In Rhode Island, there is no paperwork required to become a sole proprietor and no associated fee. If you want to operate under a name other than your own, you can file a Fictitious Business Name application and pay a $10 fee, but this is not required. You can start a sole proprietorship today with no formalities.

Since you're the sole owner, you can simply start running your business. However, there are licenses and permits you'll need to legally operate your business. For example, you may need zoning permits, sales tax permits, or a liquor license based on your type of business.