How Much Does It Cost to Start a Business in Rhode Island?
Last updated: March 2026
Rhode Island Business Overview
LLC Filing Fee
$150
Sales Tax Rate
7.0%
Minimum Wage
$15/hr
Cost of Living Index
115.8
Workers Comp
Required
Annual Report Fee
$50
Starting a Business in Rhode Island
Rhode Island businesses register with the Secretary of State's Division of Business Services. Local cities and towns require business licenses.
Rhode Island has a graduated income tax with rates from 3.75% to 5.99%. Corporate income tax is 7%.
Rhode Island's small size and proximity to Boston create a dense market for local services. The state's coastal economy drives tourism and related hospitality businesses.
For official formation documents, visit the Rhode Island Secretary of State.
Startup Costs for 100 Business Types in Rhode Island
The table below shows estimated startup costs for every major business type, adjusted for Rhode Island’s cost of living index of 115.8. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $8,120 | $23,200 | $53,360 |
| Airbnb / Vacation Rental | Real Estate | $12,760 | $34,800 | $104,400 |
| Ambulance Service | Transportation & Logistics | $92,800 | $232,000 | $580,000 |
| App Development Company | Tech & Online | $11,600 | $34,800 | $92,800 |
| Architecture Firm | Professional Services | $23,200 | $63,800 | $150,800 |
| Auto Detailing Business | Automotive | $5,800 | $34,800 | $116,000 |
| Auto Repair Shop | Automotive | $87,000 | $232,000 | $580,000 |
| Bakery | Food & Beverage | $23,200 | $110,200 | $348,000 |
| Bar & Nightclub | Food & Beverage | $116,000 | $406,000 | $986,000 |
| Barbershop | Beauty & Personal Care | $17,400 | $75,400 | $203,000 |
| Beauty Supply Store | Beauty & Personal Care | $34,800 | $116,000 | $348,000 |
| Bookstore | Retail | $29,000 | $116,000 | $348,000 |
| Brewery / Microbrewery | Food & Beverage | $116,000 | $464,000 | $1,160,000 |
| Cannabis Dispensary | Specialty & Regulated | $144,420 | $385,120 | $1,444,200 |
| Car Wash | Automotive | $144,420 | $631,040 | $1,802,640 |
| Carpentry & Woodworking Shop | Construction & Trades | $12,180 | $32,480 | $81,200 |
| Catering Business | Food & Beverage | $13,920 | $61,480 | $150,800 |
| Chiropractic Office | Health & Wellness | $46,400 | $139,200 | $348,000 |
| Cleaning Business | Home Services | $1,740 | $12,760 | $42,920 |
| Clothing Boutique | Retail | $34,800 | $116,000 | $348,000 |
| Coffee Shop | Food & Beverage | $29,000 | $139,200 | $406,000 |
| Concrete Business | Construction & Trades | $29,000 | $75,400 | $174,000 |
| Consulting Business | Professional Services | $2,320 | $10,440 | $30,160 |
| Convenience Store | Retail | $58,000 | $324,800 | $870,000 |
| Courier & Delivery Service | Transportation & Logistics | $9,280 | $25,520 | $63,800 |
| Cybersecurity Firm | Tech & Online | $23,200 | $63,800 | $174,000 |
| Dance Studio | Childcare & Education | $23,200 | $92,800 | $290,000 |
| Daycare Center | Childcare & Education | $69,600 | $208,800 | $580,000 |
| Demolition Company | Construction & Trades | $34,800 | $92,800 | $232,000 |
| Dental Practice | Health & Wellness | $290,000 | $580,000 | $1,160,000 |
| Digital Marketing Agency | Tech & Online | $4,640 | $13,920 | $37,120 |
| E-Commerce Store | Tech & Online | $5,800 | $17,400 | $58,000 |
| Electrical Business | Home Services | $17,400 | $63,800 | $185,600 |
| Esthetics & Skincare Business | Beauty & Personal Care | $9,280 | $46,400 | $139,200 |
| Excavation Company | Construction & Trades | $58,000 | $150,800 | $406,000 |
| Financial Planning Practice | Professional Services | $23,200 | $63,800 | $150,800 |
| Flower Shop | Retail | $23,200 | $87,000 | $232,000 |
| Food Delivery Service | Food & Beverage | $11,600 | $60,320 | $150,800 |
| Food Processing Business | Food & Beverage | $87,000 | $290,000 | $870,000 |
| Food Truck | Food & Beverage | $52,200 | $139,200 | $232,000 |
| Freight Brokerage | Transportation & Logistics | $18,560 | $41,760 | $92,800 |
| Furniture Store | Retail | $58,000 | $232,000 | $696,000 |
| General Contracting Business | Construction & Trades | $23,200 | $63,800 | $150,800 |
| Ghost Kitchen | Food & Beverage | $23,200 | $69,600 | $174,000 |
| Gift Shop | Retail | $23,200 | $81,200 | $232,000 |
| Gym & Fitness Center | Health & Wellness | $58,000 | $290,000 | $1,160,000 |
| Hair Salon | Beauty & Personal Care | $17,400 | $87,000 | $290,000 |
| Handyman Business | Home Services | $2,320 | $11,600 | $38,280 |
| Home Health Care Agency | Health & Wellness | $46,400 | $150,800 | $348,000 |
| HVAC Business | Home Services | $23,200 | $81,200 | $232,000 |
| Ice Cream Shop | Food & Beverage | $23,200 | $87,000 | $232,000 |
| Insurance Agency | Professional Services | $17,400 | $46,400 | $104,400 |
| IT Services Business | Tech & Online | $17,400 | $46,400 | $116,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $29,000 | $104,400 | $290,000 |
| Landscaping Business | Home Services | $11,600 | $46,400 | $139,200 |
| Laundromat | Real Estate | $116,000 | $290,000 | $696,000 |
| Law Firm | Professional Services | $13,920 | $39,440 | $93,960 |
| Limousine & Car Service | Transportation & Logistics | $46,400 | $104,400 | $255,200 |
| Liquor Store | Retail | $58,000 | $208,800 | $580,000 |
| Marketing Agency | Professional Services | $5,800 | $20,880 | $58,000 |
| Martial Arts Studio | Childcare & Education | $23,200 | $81,200 | $232,000 |
| Meal Prep Business | Food & Beverage | $23,200 | $75,400 | $232,000 |
| Med Spa | Health & Wellness | $116,000 | $406,000 | $1,160,000 |
| Medical Practice | Health & Wellness | $174,000 | $464,000 | $1,160,000 |
| Mental Health Practice | Health & Wellness | $17,400 | $58,000 | $174,000 |
| Moving Company | Home Services | $34,800 | $116,000 | $348,000 |
| Music School | Childcare & Education | $11,600 | $58,000 | $174,000 |
| Nail Salon | Beauty & Personal Care | $23,200 | $104,400 | $290,000 |
| Painting Business | Home Services | $5,800 | $29,000 | $92,800 |
| Personal Training Business | Health & Wellness | $5,800 | $29,000 | $116,000 |
| Pest Control Business | Home Services | $11,600 | $46,400 | $139,200 |
| Pet Store | Retail | $34,800 | $116,000 | $348,000 |
| Pharmacy | Health & Wellness | $174,000 | $464,000 | $1,160,000 |
| Physical Therapy Clinic | Health & Wellness | $69,600 | $208,800 | $522,000 |
| Pizza Shop | Food & Beverage | $58,000 | $203,000 | $464,000 |
| Plumbing Business | Home Services | $17,400 | $58,000 | $174,000 |
| Podcast Production Company | Tech & Online | $2,320 | $6,960 | $20,880 |
| Preschool | Childcare & Education | $58,000 | $174,000 | $464,000 |
| Property Management Company | Real Estate | $12,180 | $27,840 | $63,800 |
| Real Estate Agency | Professional Services | $11,600 | $32,480 | $81,200 |
| Real Estate Investing (Rental) | Real Estate | $29,000 | $87,000 | $290,000 |
| Restaurant | Food & Beverage | $203,000 | $435,000 | $870,000 |
| Roofing Company | Home Services | $17,400 | $69,600 | $208,800 |
| SaaS Company | Tech & Online | $23,200 | $69,600 | $232,000 |
| Spa & Massage Therapy | Health & Wellness | $11,600 | $81,200 | $290,000 |
| Staffing Agency | Professional Services | $23,200 | $63,800 | $174,000 |
| Storage Unit Facility | Real Estate | $232,000 | $696,000 | $2,320,000 |
| Tattoo Shop | Beauty & Personal Care | $23,200 | $68,440 | $232,000 |
| Tax Preparation Business | Professional Services | $4,060 | $11,600 | $31,320 |
| Thrift Store | Retail | $23,200 | $87,000 | $232,000 |
| Tire Shop | Automotive | $58,000 | $174,000 | $464,000 |
| Towing Company | Automotive | $58,000 | $174,000 | $464,000 |
| Trucking Company | Transportation & Logistics | $34,800 | $92,800 | $232,000 |
| Tutoring Business | Childcare & Education | $2,320 | $27,840 | $116,000 |
| Used Car Dealership | Automotive | $58,000 | $232,000 | $696,000 |
| Vape Shop | Retail | $29,000 | $87,000 | $232,000 |
| Web Development Agency | Tech & Online | $4,060 | $13,920 | $38,280 |
| Welding Business | Construction & Trades | $17,400 | $46,400 | $116,000 |
| Winery | Food & Beverage | $174,000 | $883,920 | $3,480,000 |
| Yoga Studio | Health & Wellness | $17,400 | $92,800 | $232,000 |
Most Popular Business Types in Rhode Island
Licenses & Permits in Rhode Island
General Business License
Rhode Island requires businesses to register with the Rhode Island Department of State for entity formation and with the Rhode Island Division of Taxation for sales tax and employer tax purposes. Many Rhode Island cities and towns require local business licenses — Providence requires a business license from the Department of Inspection and Standards. Rhode Island also requires a Retail Sales Permit for businesses selling taxable goods. The state operates a RI Business Portal for registration assistance.
Industry-Specific Licenses
- Food Service Establishment License — Rhode Island Department of Health — Food Protection ProgramCost: $75-$400 • Renewal: Annual
- General Contractor Registration — Rhode Island Contractors Registration and Licensing BoardCost: $150-$400 • Renewal: Annual
- Cosmetology Establishment License — Rhode Island Board of Examiners in CosmetologyCost: $50-$150 • Renewal: Annual
- Real Estate Broker License — Rhode Island Department of Business Regulation — Real EstateCost: $100-$300 • Renewal: Annual
- Child Day Care Center License — Rhode Island Department of Children, Youth and FamiliesCost: $50-$200 • Renewal: Annual
- Class A Liquor License — Rhode Island Department of Business Regulation — Liquor LicensingCost: $300-$3,000 • Renewal: Annual
- Commercial Fishing License — Rhode Island Department of Environmental Management — Division of Marine FisheriesCost: $50-$400 • Renewal: Annual
- Health Care Facility License — Rhode Island Department of Health — Office of Facilities RegulationCost: $200-$1,000 • Renewal: Annual
Home-Based Business Rules
Rhode Island cities and towns regulate home-based businesses through local zoning ordinances. Providence allows home occupations in residential zones with restrictions on commercial signage and customer traffic. Rhode Island's compact geography means that home-based businesses serving the Providence metro area can access significant markets. Rhode Island's cottage food law has one of the lowest sales caps ($2,500) for home-based food production in the nation.
Rhode Island Business Resources
SBA District Office
Rhode Island SBA District Office — Providence
Secretary of State
https://business.sos.ri.govZoning Information
Rhode Island municipalities manage zoning. Providence has active commercial zoning with arts and entertainment overlay districts.
Health Department Notes
Food establishments are licensed by the Rhode Island Department of Health. Local health departments conduct inspections.
Workers Compensation
Required for all employers. Rhode Island has a competitive workers comp market.