Is it cheaper to form an LLC in Florida or Rhode Island?

Florida is cheaper at formation ($125) than Rhode Island ($150). Ongoing costs are also different: $239 vs $550 per year. Total over three years: $842 vs $1,800.

Can I form an LLC in Florida if I live in Rhode Island?

Yes, but your Rhode Island business will almost certainly need to register as a foreign LLC in Rhode Island too, which means paying Rhode Island's foreign registration fee and any ongoing Rhode Island obligations on top of the Florida ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

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

Florida online: 7 business days; Rhode Island online: 2 business days. Florida does not offer paid expedite. Rhode Island does not offer paid expedite.

Which state has lower taxes for an LLC, Florida or Rhode Island?

Florida: no state income tax, no entity-level franchise or LLC tax. Rhode Island: state income tax applies to member-level pass-through income, plus a $400 minimum entity-level tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Florida and Rhode Island both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Florida or Rhode Island to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Florida vs Rhode Island LLC comparison

Florida charges $125 to form an LLC; Rhode Island charges $150. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Florida runs about $958 less in total state fees than Rhode Island. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Rhode Island imposes an entity-level annual tax on every LLC ($400 minimum). Florida does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Rhode Island typically clears standard online filings faster than Florida. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Florida $125

Rhode Island $150

Florida saves $25

Year 1 total estimate

Florida $364

Rhode Island $700

Florida saves $336

Ongoing per year

Florida $239

Rhode Island $550

Florida saves $311

3-year total

Florida $842

Rhode Island $1,800

Florida saves $958

Key differences at a glance

Florida costs $25 less to form ($125 vs $150).
Florida is $311 per year cheaper to maintain ($239 vs $550).
Florida has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Rhode Island imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Florida does not.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Florida

No state income tax
No entity-level franchise or LLC tax

Both states

Online filing
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Florida Rhode Island

Year 1

$364

$700

Year 2

$603

$1,250

Year 3

$842

$1,800

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Florida, business operates there No foreign LLC registration needed. You pay Florida fees only.	$364	$239	$842
You live in Rhode Island, business operates there No foreign LLC registration needed. You pay Rhode Island fees only.	$700	$550	$1,800
Non-resident forming in Florida with operations elsewhere You pay Florida's fees plus a typical home-state foreign LLC registration of about $200 per year.	$564	$439	$1,442
Non-resident forming in Rhode Island with operations elsewhere You pay Rhode Island's fees plus a typical home-state foreign LLC registration of about $200 per year.	$900	$750	$2,400

Florida vs Rhode Island: full comparison

Dimension	Florida	Rhode Island
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	7 business days	2 business days
Expedited option Neither state offers paid expedite	Not offered	Not offered
Annual report Required in addition to tax	Required, $139	Required, $50
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	$400 minimum
State income tax On pass-through LLC income at member level	No	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$125	$150
State sales tax General statewide rate	6.0%	7.0%

Taxes in Florida and Rhode Island

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Florida tax

No entity-level franchise tax on LLCs. No state income tax. Corporate rate 5.5%.

Rhode Island tax

$400 minimum annual tax (flat basis). State income tax applies to member-level pass-through income. Corporate rate 7.0%.

Ongoing compliance

The recurring filings each state requires after formation.

Florida

Annual report $139, due 05/01 each year. Registered agent required in Florida.

Rhode Island

Annual report $50, due 05/01 each year. Registered agent required in Rhode Island.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Florida

Check business-name availability on the Florida entity search.
Appoint a registered agent with a physical Florida street address.
File CR2E047 - Articles of Organization for Florida Limited Liability Company for $125.
Wait for approval. Online typically 7 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Florida statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $139 when it comes due.

Rhode Island

Check business-name availability on the Rhode Island entity search.
Appoint a registered agent with a physical Rhode Island street address.
File Articles of Organization (Form 400) for $150.
Wait for approval. Online typically 2 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Rhode Island statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $50 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Florida and Rhode Island (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Florida or Rhode Island does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Florida Department of State, Division of Corporations

Website: dos.fl.gov/sunbiz
Phone: (850) 245-6052
Email: NewFilingsCorpHelp@DOS.MyFlorida.com
Mail: Division of Corporations, P.O. Box 6327, Tallahassee, FL 32314
Office: The Centre of Tallahassee, 2415 N. Monroe Street, Suite 810, Tallahassee, FL 32303
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Rhode Island Department of State, Business Services Division

Website: www.sos.ri.gov/divisions/business-services
Phone: (401) 222-3040
Email: corporations@sos.ri.gov
Mail: 148 W. River Street, Providence, RI 02904-2615
Hours: 8:30 AM to 4:30 PM Eastern, Monday to Friday

Florida Department of Revenue

Website: floridarevenue.com
Phone: (850) 488-6800
Mail: 5050 W Tennessee Street, Tallahassee, FL 32399-0100
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Rhode Island Division of Taxation

Website: tax.ri.gov
Phone: (401) 574-8829
Email: Tax.Corporate@tax.ri.gov
Mail: One Capitol Hill, Providence, RI 02908
Hours: 8:30 AM to 3:30 PM Eastern, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Florida or Rhode Island?

Florida is cheaper at formation ($125) than Rhode Island ($150). Ongoing costs are also different: $239 vs $550 per year. Total over three years: $842 vs $1,800.
Can I form an LLC in Florida if I live in Rhode Island?

Yes, but your Rhode Island business will almost certainly need to register as a foreign LLC in Rhode Island too, which means paying Rhode Island's foreign registration fee and any ongoing Rhode Island obligations on top of the Florida ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Florida vs Rhode Island?

Florida online: 7 business days; Rhode Island online: 2 business days. Florida does not offer paid expedite. Rhode Island does not offer paid expedite.
Which state has lower taxes for an LLC, Florida or Rhode Island?

Florida: no state income tax, no entity-level franchise or LLC tax. Rhode Island: state income tax applies to member-level pass-through income, plus a $400 minimum entity-level tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Florida and Rhode Island both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Florida or Rhode Island to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

FloridaOpen Florida LLC guide →
Rhode IslandOpen Rhode Island LLC guide →

More Florida and Rhode Island comparisons

More Florida vs ...

More Rhode Island vs ...

Sources

Filing fee: dos.fl.gov/sunbiz/forms/fees/llc-fees/ · verified April 21, 2026
Florida Division of Corporations LLC fee schedule: Articles of Organization $100.00 + mandatory Registered Agent Designation $25.00 = $125.00 total. Same fee whether filed online or by mail.
Expedited filing: dos.fl.gov/sunbiz/start-business/efile/fl-llc/ · verified April 21, 2026
Florida Division of Corporations does not offer expedited filing service for new LLC formations. Documents are processed in the order received. Online filings with credit card typically post within 2-3 business days; mail filings take several weeks.
Online filing portal: efile.sunbiz.org/llc_file.html · verified April 21, 2026
Sunbiz e-file portal for new Florida LLC Articles of Organization.
Certificate of Formation form: dos.fl.gov/sunbiz/forms/limited-liability-company/ · verified April 21, 2026
Form CR2E047 - Articles of Organization for Florida LLC. Available as PDF at http://form.sunbiz.org/pdf/cr2e047.pdf
Business name search: search.sunbiz.org/Inquiry/CorporationSearch/ByName · verified April 21, 2026
Sunbiz business entity search by name.
Operating agreement requirement: www.flsenate.gov/Laws/Statutes/2025/605.0105 · verified April 21, 2026
Fla. Stat. §605.0105 defines the LLC operating agreement as an agreement that 'may be oral, implied, in a record, or in any combination thereof.' Not required to be written or filed with the state.
Publication requirement: www.flsenate.gov/Laws/Statutes/2025/Chapter605/All · verified April 21, 2026
Florida Chapter 605 (Florida Revised LLC Act) imposes no newspaper publication requirement to form an LLC.
Foreign LLC registration fee: dos.fl.gov/sunbiz/forms/fees/llc-fees/ · verified April 21, 2026
Foreign LLC Application for Authorization to Transact Business: $100 filing + $25 registered agent = $125 total. Same as domestic formation fee.
Annual report fee: dos.fl.gov/sunbiz/manage-business/efile/annual-report/ · verified April 21, 2026
Florida Department of State: $138.75 annual report fee for LLCs. Due January 1 through May 1. Late filing after May 1 adds a $400 non-negotiable penalty (total $538.75). Administrative dissolution begins after the third Friday in September for unfiled reports.
Franchise tax: floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx · verified April 21, 2026
Florida has no franchise tax. Corporate income tax of 5.5% applies only when an LLC elects C-corp treatment or is owned by a corporation. No state-level entity-level tax on pass-through LLCs.
State income tax: floridarevenue.com/taxes/taxesfees/Pages/individual.aspx · verified April 21, 2026
Florida Constitution Article VII, Section 5 prohibits a personal income tax. Pass-through LLC income flows to members who owe no Florida individual income tax.
Corporate income tax rate: floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx · verified April 21, 2026
Florida corporate income tax rate is 5.5% for taxable years on or after January 1, 2022.
Sales tax rate: floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx · verified April 21, 2026
Florida general state sales tax rate is 6%. Counties may impose a discretionary sales surtax ranging 0.5% to 1.5%.
Filing fee: www.sos.ri.gov/divisions/business-services/ri-business/start-your-rhod… · verified April 21, 2026
RI Department of State, Start Your Rhode Island Business page. Business Structure table lists Limited Liability Company (R.I. Gen. Laws Chapter 7-16) filing fee at $150 (paper or online). Online filings add a $6 enhanced access fee for a total of $156.
Filing fee: docs.sos.ri.gov/documents/BusinessServices/400-articles-of-organizatio… · verified April 21, 2026
RI Form 400 Articles of Organization for a Domestic Limited Liability Company (Revised 03/2026). States Filing Fee: $150.00. Instructions cite Section 7-16-6 of the General Laws of Rhode Island.
Expedited filing: www.sos.ri.gov/divisions/business-services/ri-business/start-your-rhod… · verified April 21, 2026
Rhode Island does not publish a paid expedited service tier for LLC Articles of Organization. Standard online filings are generally processed within 1 to 3 business days; in-person submissions at 148 W. River Street can be processed same day. Recorded as offered: false.
Annual report fee: www.sos.ri.gov/divisions/business-services/ri-business/file-your-annua… · verified April 21, 2026
RI Department of State Annual Report page. LLCs file Form 632 between February 1 and May 1 each year (starting the year after registration). Base filing fee $50, plus $2.50 enhanced access fee if filed online. $25 late penalty applied June 1 (plus $3 online filing fee).
Franchise tax: www.sos.ri.gov/divisions/business-services/business-basics/costs-and-f… · verified April 21, 2026
RI Department of State Costs and Fees page confirms every Legal Business Entity (Corporation, LLC, Limited Partnership) owes a $400 minimum corporate tax annually to the RI Division of Taxation, regardless of whether business was conducted or profit was made, and the amount is not pro-rated.
Franchise tax: tax.ri.gov/tax-sections/corporate-tax/tax-filing-requirements · verified April 21, 2026
RI Division of Taxation Tax Filing Requirements. LLCs not treated as corporations federally (including single-member LLCs) file Form RI-1065 and owe the $400 minimum tax under R.I. Gen. Laws 44-11-2(e). LLCs taxed as C corporations owe the greater of $400 or 7% of apportioned net income.
Operating agreement requirement: webserver.rilegislature.gov/Statutes/TITLE7/7-16/7-16-2.HTM · verified April 21, 2026
R.I. Gen. Laws section 7-16-2 defines operating agreement as any agreement, written or oral, of the members. Rhode Island does not require LLCs to adopt a written operating agreement. Recorded as operatingAgreementRequired: false.
Foreign LLC registration fee: docs.sos.ri.gov/documents/BusinessServices/450-application-for-registr… · verified April 21, 2026
RI Form 450 Application for Registration of a Foreign Limited Liability Company. Filing fee $150. Requires a Certificate of Good Standing (dated within 60 days) from the home state.
Publication requirement: www.sos.ri.gov/divisions/business-services/ri-business/start-your-rhod… · verified April 21, 2026
Rhode Island does not require newspaper publication for LLC formation. Not addressed in R.I. Gen. Laws Chapter 7-16 or the Department of State start-a-business guide.
Business name search: business.sos.ri.gov/corpweb/corpsearch/corpsearch.aspx · verified April 21, 2026
RI Corporate Database entity search. Use to confirm name availability before filing Form 400.
Sales tax rate: tax.ri.gov/tax-sections/sales-excise-taxes/sales-use-tax · verified April 21, 2026
Rhode Island statewide sales and use tax is 7%. No local option; the 7% rate applies uniformly across the state.
Corporate income tax rate: tax.ri.gov/tax-sections/corporate-tax · verified April 21, 2026
Rhode Island C corporation income tax is a flat 7% of apportioned net income, with a $400 minimum. Rate has been 7% since January 1, 2015.

Legal Disclaimer: FreeNetLaw provides general legal information, not legal advice. The information on this site is not a substitute for consultation with a licensed attorney. Laws vary by jurisdiction and change frequently. Always verify information with official sources and consult a qualified attorney for advice about your specific situation.