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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.
A sole proprietorship provides no legal separation between itself and its owner. The owner will receive all its profits and be accountable for all its losses and debts. An LLC, on the other hand, gives its members limited liability, protecting them from being held personally liable for its financial obligations.
In Rhode Island, you can establish a sole proprietorship without filing any legal documents with the Rhode Island state government.
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.
Rhode Island General Business License But good news: Rhode Island doesn't require a general license to do business in the state. Meaning, your Rhode Island LLC doesn't need a general state business license. But depending on what type of business you run, your LLC might need an occupational license.
How to start a Rhode Island Sole Proprietorship Step 1 ? Business Planning Stage. ... Step 2 ? Name your Sole Proprietorship and Obtain a DBA. ... Step 3: Get an EIN from the IRS. ... Step 4 ? Research business license requirements. ... Step 5 ? Maintain your business.
A sole proprietorship is an unincorporated business that one person owns and manages. As the business and the owner are not legally separate, it is the simplest form of business structure. It is also known as individual entrepreneurship, sole trader, or simply proprietorship.