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To record received sales tax from customers, debit your Cash account, and credit your Sales Revenue and Sales Tax Payable accounts. When you remit the sales tax to the government, you can reverse your initial journal entry. To do this, debit your Sales Tax Payable account and credit your Cash account.

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.

You can register for a Rhode Island seller's permit online through the Rhode Island Division of Taxation. To apply, you'll need to provide the Rhode Island Division of Taxation with certain information about your business, including but not limited to: Business name, address, and contact information. Federal EIN number.

The sales tax is imposed upon the retailer at the rate of 7% of the gross receipts from taxable sales. In addition to the sales tax, there is also a 6% hotel tax on the rental of rooms in hotels, motels or lodging houses.

The term trade or business generally includes any activity carried on for the production of income from selling goods or performing services. It is not limited to integrated aggregates of assets, activities, and goodwill that comprise businesses for purposes of certain other provisions of the Internal Revenue Code.

Some states don't require DBAs to be registered, but Rhode Island does. If you plan to use a name that isn't your legal business name, you're required to file at the state (LLCs and corporations) or local (sole proprietors and general partnerships) level.

Typically, “doing business” is defined by activities such as maintaining a physical office or having employees in the state. Rhode Island LLC and corporation law lists several activities that are not classified as transacting business in the state.

CONVENIENCE WITHHOLDING: An employer may withhold Rhode Island personal income tax at the request of the employee even though the employee's wages are not subject to Federal income tax withholding.

In Rhode Island, most tangible personal property is subject to sales tax. Additionally, some services are also taxable, including: Installation, repair, or maintenance services for tangible personal property. Telecommunications services.