If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Rhode Island, the first step is visiting the division of taxation website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Rhode Island?
Tangible property that is sold, rented, or leased is subject to sales tax in Rhode Island. Telecommunications services and cable television services are also subject to sales tax. Clothing, food, and medical items are generally tax-exempt.
Rhode Island Sales Tax Rate
The sales tax rate in Rhode Island is 7%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Rhode Island Sales Tax
In Rhode Island, acquire a seller’s permit by following the division of taxation’s detailed instructions for registration:
- Create an account on the division of taxation website.
- Fill out the business registration application.
- Pay the $10 fee.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Rhode Island, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.