Small Business & Entity Tax • Rhode Island (RI)

Rhode Island LLC vs. S-Corp Tax Savings & Filing Fee Calculator (2026)

Calculate exact 15.3% self-employment tax savings with an IRS Form 2553 S-Corporation election in Rhode Island, factoring in the $150 RI Articles of Organization fee and $50/yr report cost.

Rhode Island LLC vs. S-Corp Tax Inputs
Gross revenue minus ordinary deductible business expenses.
Rhode Island initial LLC filing fee: $150 | State income tax benchmark: 4.75%.
Estimated Annual Net Tax Savings (S-Corp)
$0 / yr
After payroll & RI compliance costs
  • Standard Disregarded LLC SE Tax (15.3%): $0
  • S-Corp W-2 Reasonable Salary: $0
  • S-Corp Shareholder Distribution (0% SE Tax): $0
  • S-Corp Payroll Tax (15.3% on Salary Only): $0
  • Rhode Island Initial Filing / Annual Fee: $150 / $50/yr
  • Est. Rhode Island State Income Tax (4.75%): $0
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Rhode Island (RI) Regional Benchmarks & Statutory Notes

Rhode Island Benchmark Metric 2026 Value Regional Context (Northeast)
Skilled Trade Labor Cost Multiplier 1.18x National Avg Avg contractor billing rate: ~$99/hr
4,000 PSI Ready-Mix Concrete Benchmark $180 / cubic yard Local frost footing depth: 42 inches
Rhode Island LLC Filing & Annual Report Fee $150 initial / $50/yr Top state income tax benchmark: 4.75%
Residential Security Deposit Statutory Cap & Deadline 1x Rent / 20 Days Strict 20-day deposit return window and 1-month statutory cap with coastal freeze-thaw durability needs.

Frequently Asked Questions: Rhode Island LLC vs. S-Corp Tax & Filing Fee Calculator

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

In Rhode Island (RI), the initial Articles of Organization state filing fee is $150, and the ongoing annual report / franchise compliance fee is $50 per year. The benchmark top state income tax rate is 4.75%.

At what profit level does an S-Corp make sense in Rhode Island?

Generally, once your net business profit exceeds $65,000–$80,000 per year in Rhode Island, the 15.3% Medicare and Social Security tax savings on shareholder distributions outweigh the ~$600/yr payroll software cost and $50 annual state fee.

What is considered a reasonable S-Corp salary?

The IRS requires S-Corp owner-employees to pay themselves W-2 wages commensurate with market rates for the services performed (commonly 40%–55% of net profit for solo service businesses, depending on role and hours).

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