Rhode Island Business License

Written by: Nik Ventouris

Last updated:

Rhode Island Business License

Launching a new enterprise in Rhode Island can be a complex endeavor, particularly due to the lack of a standardized Rhode Island Business License. Due to the array of federal, state, and local licenses that entrepreneurs must wade through instead, this process can be very tricky.

This guide will walk you through the process of obtaining all the permits your business needs in Rhode Island so that you can legally get started. Keep reading to find out how to move forward in your business journey with confidence.

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Do I Need a Business License in Rhode Island

In Rhode Island, businesses are required to obtain various licenses and permits at the local, state, and federal levels. Here’s a general breakdown:

Type of Business

Below, we’ve detailed common ways in which your business type can dictate the licenses you’ll be required to obtain, as well as specific examples of these:

  • Sales Tax Permits: Any businesses in Rhode Island that make retail sales or provide taxable services will need to obtain a Sales Tax Permit from the Division of Taxation in order to collect sales tax from customers
  • Professional Licenses: Many professions in Rhode Island will have additional, specific licensing requirements. For example, if your business plans to offer licensed architecture services, it will need to apply for a permit through the Rhode Island Division of Design Professionals
  • Environmental Permits: In order to regulate and control the release of air pollution from new industrial facilities, businesses that intend to emit pollutants into the air will need to obtain the Air Pollution Control Preconstruction Permit from the Rhode Island Department of Environmental Management (DEM)

However, this is not the only factor influencing the exact combination of licenses you’ll need — the location of your business within Rhode Island plays an important role as well.


In this section, we’ve provided a succinct overview of the potential licenses and permits that your business may need due to local, state, and federal license requirements:

  • Local: There are a number of specific licenses that are issued locally in Rhode Island. These vary depending on the city or town, such as in the City of Providence, where many different kinds of businesses must obtain licenses in order to operate legally
  • State: In addition to these, there are numerous licenses and permits issued by the State of Rhode Island. For example, any business looking to serve alcohol to its customers is required to obtain a liquor license from the Rhode Island Department of Business Regulation
  • Federal: If your business operates within certain industries or does specific types of work, you might need a license from the federal government. These include alcohol, aviation, firearms and explosives, radio and television broadcasting, and transportation industries, among others

Since the exact permits and licenses your business will need are entirely unique to your situation, you’ll have to conduct thorough research into your own local, state, and federal regulations to smoothly launch your business.

Alternatively, many entrepreneurs opt to leverage the expertise of third-party services to handle this on their behalf.

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How to Get a Business License in Rhode Island

In order to get your business license(s) in Rhode Island, you will need to complete the following steps:

  • Form Your Business
  • Obtain an Employer Identification Number (EIN)
  • Apply for the Required Licenses and Permits

Let’s take a look at each step in more detail below.

Step 1: Form Your Business

Before setting out to obtain a business license in Rhode Island, it’s pivotal that you first choose an appropriate business entity. Sole proprietorships, general partnerships, and corporations are all common choices, however it’s often seen as the most advantageous for small businesses in Rhode Island to register as a Limited Liability Company (LLC). Here are a few reasons for why:

  • Limited Liability: Members are protected from personal liability for business debts, safeguarding personal assets
  • Tax Benefits: LLCs typically enjoy a pass-through tax treatment, avoiding the double taxation that corporations are subjected to
  • Management Flexibility: LLCs allow for flexibility in management structure, either being member-managed or manager-managed based on the preferences outlined in the certificate of formation
  • Ease of Formation: With the Rhode Island Secretary of State providing forms that meet the minimum state law requirements and the option to file online, setting up an LLC is relatively straightforward

Many small business owners opt to avoid the tricky process of forming an LLC by instead leveraging the help of third-party LLC formation services.

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Step 2: Obtain an EIN

The second step you’ll need to complete before applying for your business license is to obtain your EIN. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses in the United States so that their financial transactions can be identified and tracked.

An EIN is often necessitated when applying for various permits and licenses as it allows local and state governments to ensure your business is operating within the confines of the law. You can obtain it in a number of ways:

  • Online: You can apply for your EIN on the IRS’s official website by using the EIN Assistant. You should be granted your EIN shortly after completing this application
  • By Fax/Mail: After completing Form SS-4, you can apply for an EIN by submitting it to the IRS via mail or fax
  • By Phone: International applicants and businesses located outside US Territories are required to call the IRS at (267) 941-1099 to obtain their EIN — which they should receive during this call

Note: If you are a sole proprietor, you will be able to use your Social Security Number (SSN) instead (as long as you do not have employees).

Step 3: Apply for Licenses and Permits

After settling on the appropriate structure for your business and initiating the application for your EIN, the next step is to focus on securing the necessary licenses and permits to operate legally within your locale and industry.

  • Local Licenses: Your business may need to satisfy numerous local licensing requirements depending on the municipality it’s based in. These requirements often vary, so it’s best to research those that apply to you by visiting the official Rhode Island website of the city where you’ll be operating
  • Statewide Licenses: On top of a sales tax permit, you’ll need to research the list of different industries that require extra commercial licensing. Refer to the Rhode Island Department of Business Regulation website for more information
  • Federal Licenses: While the federal government doesn’t mandate licenses for general business operations, if your business falls under any government-regulated category, such as agriculture, fishing, firearms, and alcohol sales, it may be required to obtain additional federal licenses or permits

Note: For a more detailed list of the different commercial licenses available in Rhode Island, check out the Department of Business Regulation website.

Step 4: Renewal of Licenses and Permits

Many Rhode Island business licenses must be periodically renewed in order to keep them valid. If you’re uncertain whether you need to renew any of your business’s licenses, make sure to reach out to the agency that issued your business license for clarification.

Alternatively, due to how complicated each step of applying for and renewing business licenses is, third-party services that handle this entire process are becoming an increasingly popular option.

If you’re interested in finding out more about this process, see our article on How to Get a Business License.

How Much is a Business License in Rhode Island

In Rhode Island, the cost of obtaining a business license can vary significantly depending on the type of license and the nature of the business. For example, a retail sales permit from the Rhode Island Division of Taxation is often nominal or free, while professional licenses for occupations like medicine or law can range from around $100 to several hundred dollars.

Liquor licenses can be particularly expensive, often ranging from $500 to $2000. Contractor licenses and environmental permits typically can also be quite costly depending on the scope of your business’s activity. Local cities and counties may also require additional permits, which further adds to the overall cost.

To get a good idea of how much it will cost you to obtain all the business licenses you’ll need, it’s essential to consult with relevant state agencies or legal advisors to understand the exact costs associated with your business type.

Rhode Island Business License FAQ

Does Rhode Island require a business license?

Yes, Rhode Island generally requires businesses to obtain specific licenses or permits to operate. However, since there is no general business license, the exact combination of licenses you’ll need varies depending on the nature and location of your business. For more information on this topic, see our Rhode Island Business License article.

How do I get a general business license in Rhode Island?

In Rhode Island, no “general business license” is offered — instead, specific licenses are required based on the business type. Obtaining these licenses usually starts by registering your business with the Rhode Island Secretary of State, followed by obtaining any necessary state, local, or industry-specific licenses.

How much does it cost to start an LLC in Rhode Island?

The filing fee for forming an LLC in Rhode Island is $150. However, there are a number of additional costs to bear in mind, such as any additional permits or licenses you may require, as well as whether you choose to pay for a formation service or not.

How long does it take to form an LLC in Rhode Island?

The time frame for a Rhode Island business license application can vary, but generally, the process can be completed within five to seven business days if filing online. While paper filings typically take longer, expedited services are often available for an additional fee.

For all related articles, have a look at our How to Get a Business License page.