Self-employed taxes and LLC costs in Rhode Island, 2026
In Rhode Island even a one-person LLC pays a $400 fee every year to the Division of Taxation, separate from the Secretary of State report.
Total tax on this income in 2026
$20,145
Put aside 24% of each payment · $5,036 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Rhode Island income tax | $2,345 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 23.7% |
With an S corp election and a $34,000 salary, about $3,088 less tax (check it).
Computed by Radif Partners from IRS and Rhode Island agency documents read on October 15, 2026 · How we calculate
Owning an LLC in Rhode Island costs $150 to form and then $450 a year: a $50 annual report to the Secretary of State plus a $400 annual fee paid on Form RI-1065, which the state asks of single-member LLCs too. Over five years that adds up to $2,400. The state income tax runs from 3.75 % to 5.99 % in three brackets, and the brackets are the same whether you file single or jointly. A single filer with $75,000 of self-employment profit owes about $1,997 to Rhode Island and $17,492 in all once federal income tax and self-employment tax are counted. An S corporation does not pay the corporate income tax here but owes a $400 minimum tax that replaces the LLC fee; at $120,000 of profit and a $50,000 salary the election saves about $4,843 a year after that charge and $2,000 of payroll costs.
Rhode Island at a glance, 2026
| LLC filing fee | $150 |
| LLC Annual Report (Form 632) | $50 a year |
| Annual $400 fee (R.I. Gen. Laws 44-11-2(e)) | $400 a year |
| Income tax | 3.75 % to 5.99 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $17,492 in all, $1,997 to Rhode Island |
Most states let a single-member LLC live on a cheap annual report. Rhode Island adds a second bill: every LLC files Form RI-1065 with the Division of Taxation and pays a $400 annual fee equal to the corporate minimum tax, as the RI-1065 instructions spell out. That fee, not the $50 report, is what makes a Rhode Island LLC cost $450 a year. The Secretary of State report itself is accepted between between February 1 and May 1 of each year after the year of formation.
An LLC fee that the S election swaps, not adds
Elect S corporation status and the $400 does not double. The S corporation escapes the regular corporate income tax but owes the business corporation minimum tax of $400, and that minimum takes the place of the LLC fee. So the yearly state charge stays the same on both sides of the comparison, and the decision rests on federal payroll arithmetic and on your salary. The LLC vs S corp comparison walks through that arithmetic line by line.
S corp or LLC in this state
S corp saves
$4,771
| Salary used (42%) | $50,400 |
| Rhode Island entity tax | $400 |
Payroll brings a Rhode Island cost of its own. The state unemployment tax for a new employer is 1.21 % on the first $30,800 of each employee's wages, which on an owner salary of $50,000 comes to $373. The calculator above counts it.
One bracket table for everyone
Rhode Island taxes income above the standard deduction of $11,200 and a personal exemption of $5,250 (twice that for a couple). What is unusual is the next step: a married couple runs into the 4.75 % bracket at $82,050 of taxable income, exactly where a single person does. Two freelancers who marry therefore lose some room in the low bracket. A couple filing jointly with $140,000 of combined business profit owes about $3,797 to the state.
Quarterly payments start low
The threshold for estimated payments is only $250 of expected state tax above credits, according to the 2026 RI-1040ES, so nearly every profitable freelancer pays four installments, on the same dates as the IRS. Our guide to quarterly estimated taxes covers the federal side.
The entity-level tax open to sole proprietors
Rhode Island's pass-through entity election is broader than most: under R.I. Gen. Laws 44-11-2.3 it is open to S corporations, partnerships, LLCs and even sole proprietors, at 5.99 %. The catch since tax year 2025 is that owners get a credit for only 90% of the entity tax paid, so the state keeps a slice in exchange for the federal deduction. A further change is already law for 2027: the July 2026 summary of legislative changes describes a surtax of 1% on income over $1,000,000 starting in 2027, rising to 3% by 2029. Nothing of it applies to 2026 income. Neighboring Massachusetts uses a flat rate with its own millionaire surtax, a useful comparison for anyone working across the line.
Rhode Island income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $82,050 | 3.75 % | $0 to $82,050 | 3.75 % |
| $82,050 to $186,450 | 4.75 % | $82,050 to $186,450 | 4.75 % |
| over $186,450 | 5.99 % | over $186,450 | 5.99 % |