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

Rhode Island is cheaper at formation ($150) than Washington ($180). Ongoing costs are also different: $550 vs $170 per year. Total over three years: $1,800 vs $690.

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

Yes, but your Washington business will almost certainly need to register as a foreign LLC in Washington too, which means paying Washington's foreign registration fee and any ongoing Washington obligations on top of the Rhode Island 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 Rhode Island vs Washington?

Rhode Island online: 2 business days; Washington online: 5 business days. Rhode Island does not offer paid expedite. Washington offers paid expedite from $100.

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

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

Rhode Island vs Washington LLC comparison

Rhode Island charges $150 to form an LLC; Washington charges $180. 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, Washington runs about $1,110 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). Washington 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 Washington. 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

Rhode Island $150

Washington $180

Rhode Island saves $30

Year 1 total estimate

Rhode Island $700

Washington $350

Washington saves $350

Ongoing per year

Rhode Island $550

Washington $170

Washington saves $380

3-year total

Rhode Island $1,800

Washington $690

Washington saves $1,110

Key differences at a glance

Rhode Island costs $30 less to form ($150 vs $180).
Washington is $380 per year cheaper to maintain ($170 vs $550).
Washington 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. Washington 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 Washington

Paid expedited tier
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.

Rhode Island Washington

Year 1

$700

$350

Year 2

$1,250

$520

Year 3

$1,800

$690

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 Rhode Island, business operates there No foreign LLC registration needed. You pay Rhode Island fees only.	$700	$550	$1,800
You live in Washington, business operates there No foreign LLC registration needed. You pay Washington fees only.	$350	$170	$690
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
Non-resident forming in Washington with operations elsewhere You pay Washington's fees plus a typical home-state foreign LLC registration of about $200 per year.	$550	$370	$1,290

Rhode Island vs Washington: full comparison

Dimension	Rhode Island	Washington
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	2 business days	5 business days
Expedited option Paid fast-track filing	Not offered	$100
Annual report Required in addition to tax	Required, $50	Required, $70
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$400 minimum	None
State income tax On pass-through LLC income at member level	Yes	No
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	$150	$180
State sales tax General statewide rate	7.0%	6.5%

Taxes in Rhode Island and Washington

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.

Rhode Island tax

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

Washington tax

No entity-level franchise tax on LLCs. No state income tax.

Ongoing compliance

The recurring filings each state requires after formation.

Rhode Island

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

Washington

Annual report $70, due on your anniversary month. Registered agent required in Washington.

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.

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.

Washington

Check business-name availability on the Washington entity search.
Appoint a registered agent with a physical Washington street address.
File Certificate of Formation - Limited Liability Company for $180.
Wait for approval. Online typically 5 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Washington 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 $70 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 Rhode Island and Washington (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 Rhode Island or Washington 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

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

Washington Secretary of State - Corporations & Charities Division

Website: www.sos.wa.gov/corporations-charities
Phone: (360) 725-0377
Email: corps@sos.wa.gov
Mail: Corporations & Charities Division, P.O. Box 40234, Olympia, WA 98504-0234
Office: 801 Capitol Way S, Olympia, WA 98501-1226
Hours: 8:00 AM to 5:00 PM Pacific, 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

Washington State Department of Revenue

Website: dor.wa.gov
Phone: (360) 705-6705
Mail: Washington State Department of Revenue, P.O. Box 47450, Olympia, WA 98504-7450
Office: 6500 Linderson Way SW, Tumwater, WA 98501
Hours: 8:00 AM to 5:00 PM Pacific, Monday to Friday

Frequently Asked Questions

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

Rhode Island is cheaper at formation ($150) than Washington ($180). Ongoing costs are also different: $550 vs $170 per year. Total over three years: $1,800 vs $690.
Can I form an LLC in Rhode Island if I live in Washington?

Yes, but your Washington business will almost certainly need to register as a foreign LLC in Washington too, which means paying Washington's foreign registration fee and any ongoing Washington obligations on top of the Rhode Island 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 Rhode Island vs Washington?

Rhode Island online: 2 business days; Washington online: 5 business days. Rhode Island does not offer paid expedite. Washington offers paid expedite from $100.
Which state has lower taxes for an LLC, Rhode Island or Washington?

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

Rhode IslandOpen Rhode Island LLC guide →
WashingtonOpen Washington LLC guide →

More Rhode Island and Washington comparisons

More Rhode Island vs ...

More Washington vs ...

Sources

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.
Filing fee: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
WA SoS Corporations & Charities Division Fee Schedule. Under 'Limited Liability Companies (RCW 25.15)': Original Filings = $180. Same $180 fee applies whether filed online through CCFS or by mail. Washington does not charge an online-vs-mail differential for the Certificate of Formation itself.
Expedited filing: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Expedited service = $100 per business entity, generally processed within three working days. Same-day service = $150 per business entity (front-counter submission only). Mail-in expedited requests must include $100 and label envelope 'EXPEDITE'. We record the $100 three-business-day (approx 72-hour) tier.
Foreign LLC registration fee: www.sos.wa.gov/corporations-charities/business-entities/limited-liabil… · verified April 21, 2026
Foreign Registration for a non-WA LLC = $180 filing fee, matching the domestic Certificate of Formation fee.
Operating agreement requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15.018 · verified April 21, 2026
RCW 25.15.018 (Washington Limited Liability Company Act) recognizes an LLC agreement that may be oral, written, or implied. There is no statutory requirement that LLCs adopt an operating agreement, so this is recorded as not required. If none is adopted, the default provisions of RCW 25.15 govern.
Publication requirement: app.leg.wa.gov/rcw/default.aspx?cite=25.15 · verified April 21, 2026
Washington imposes no publication requirement on LLCs. RCW Chapter 25.15 contains no publication mandate.
Annual report fee: www.sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/… · verified April 21, 2026
Annual Report fee for profit business entity types (including LLCs) is $70, increased per WAC 434-112-085(7) and codified in RCW 23.95.515. Annual Report with delinquency fee = $95. Initial or Amended Annual Report = $10.
Franchise tax: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no franchise tax on LLCs. Washington's Business & Occupation (B&O) tax is a gross-receipts tax, not a franchise tax. B&O rates in 2026: retailing 0.471%, wholesaling 0.484%, manufacturing 0.484%, service & other activities 1.5% (less than $1M in prior-year taxable income), 1.75% ($1M-$5M), 2.1% (over $5M effective Oct 1, 2025). Additional 0.5% surcharge on WA taxable income over $250M from Jan 1, 2026. Because the B&O is structurally a gross-receipts tax on business activity rather than a capital-based franchise tax, franchiseTax.applies is set to false.
Corporate income tax rate: dor.wa.gov/taxes-rates/business-occupation-tax · verified April 21, 2026
Washington has no corporate income tax; maxCorporateRate is recorded as null. The state's business tax is the B&O gross-receipts tax (captured in franchiseTax.notes). Washington also has no state personal income tax, only a 7% long-term capital gains excise tax for individuals above the threshold.
Sales tax rate: dor.wa.gov/taxes-rates/sales-use-tax-rates · verified April 21, 2026
Washington's statewide sales and use tax rate is 6.5%. Cities and counties add local sales taxes, bringing combined rates to roughly 7% to 10.6% depending on jurisdiction. Only the 6.5% statewide rate is recorded here.
Business name search: ccfs.sos.wa.gov/#/AdvancedSearch · verified April 21, 2026
Corporations and Charities Filing System (CCFS) advanced search. Same platform used for online filings.
Online filing portal: ccfs.sos.wa.gov/ · verified April 21, 2026
Washington's Corporations and Charities Filing System (CCFS) portal. Standard online approvals typically complete within 5 business days. Filers can bundle the free Initial Report with the Certificate of Formation to satisfy the 120-day initial report requirement at no extra cost.
Certificate of Formation name: www.sos.wa.gov/sites/default/files/2022-09/12.10.2020---certificate-of… · verified April 21, 2026
Mail-in paper form titled 'Certificate of Formation - Limited Liability Company'. Online filers use the equivalent CCFS on-screen form.

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