As an entrepreneur, one of the first big decisions you’ll make is what to name your business. The name should be simple yet descriptive. And, Rhode Island won’t let you use a business name that’s already in use, so you’ll need to run a business name search to make sure the name you want is available.
While it might sound confusing, Rhode Island has a simple search tool on its government site that can help. We’ll explain how a business name search works and provide some tips to get your LLC off the ground in Rhode Island:
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How to check business name availability in Rhode Island
As mentioned, you can’t just pick any name for a Rhode Island business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Rhode Island Secretary of State website
Visit the Rhode Island Secretary of State to use a simple search tool to investigate name availability.
2. Fill in the correct boxes
Don’t get overwhelmed by the number of search bars and drop-down menus on this page. Just click the dot next to “Search entity name” and enter your desired business name into that search bar.
3. Choose your search type
Select “exact match” from the drop-down menu to the right of the search bar. You can experiment with other options later, but for now, choose “exact match.”
4. Run the search
You can skip all of the other boxes. Those aren’t necessary for this search.
Next, just scroll to the bottom of the page and hit “Search.” You’ll see results.
If you see an exact match, the name is not available. If there’s no match to your search, the name is available.
In Rhode Island, no two businesses in the state can have the same name, so keep searching for names until you find one that’s available.
Names must be unique. Adding “LLC” to a name or making a word plural, for instance, aren’t enough to make a name unique.
5. Consider reserving a name
After running a [Rhode Island] business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Rhode Island allows business owners to reserve a name for 120 days for $50.
To do so, you’ll fill out a quick form at the link above and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Rhode Island, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
6. Check domain name availability
We created a tool that makes it easy.
How to name your Rhode Island business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Rhode Island company?
As you research available business names in Rhode Island, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Rhode Island business
Ready to set up your business in RI? Here’s what you do:
1. File your Articles of Organization
Visit the Rhode Island Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Rhode Island, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Rhode Island, the cost is $150.
4. Wait for approval
Rhode Island will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Rhode Island small business facts
Before you start considering business name availability in Rhode Island, take a look at these small business statistics from the U.S. Business Administration:
- Rhode Island small businesses employed 229,212 people, or 52.6% of the private workforce, in 2017.
- The number of proprietors increased in 2018 by 3.2% relative to the previous year.
- Small businesses created 3,186 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 4,255 net jobs. The largest losses were in firms employing 100 to 499 employees, which lost 1,000 net jobs.
- In the fourth quarter of 2019, Rhode Island grew at an annual rate of 2.2%, which was faster than the overall US growth rate of 2.1%. Rhode Island’s 2019 overall growth rate of 2.7% was up from the 2018 rate of 1.2%.
- Private-sector employment decreased 21.1% during the 12-month period ending in April 2020. This was below the increase of 0.7% during the prior 12-month period.
- In April 2020, the unemployment rate was 17.0%, up from 3.6% in April 2019. This was above the April 2020 national unemployment rate of 14.7%.
- The median income for self–employed individuals at their own incorporated businesses was $53,794 in 2018. For self–employed individuals at their own unincorporated firms, median income was $32,639.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Rhode Island:
Why is it so important to check on business name availability?
Rhode Island will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Does Rhode Island have an annual LLC tax?
Yes. Limited liability companies (LLCs) are required under Rhode Island law to file an annual return with the Rhode Island Division of Taxation and pay an annual tax or fee. Whether the LLC is being treated as a pass-through entity or a corporation will determine which form must be filed and which tax/fee must be paid. The Rhode Island Department of Revenue provides a further explanation.
Does Rhode Island require an operating agreement?
No, an operating agreement is not required in Rhode Island. However, having an operating agreement in place is recommended. In the event of any legal issues arising, having an operating agreement on hand already will help the business legally and make the business appear more prepared and professional.
Are there financial assistance programs for startups in RI?
Yes. Like many states, Rhode Island has put several funding streams in place to help new entrepreneurs. Check out this list of government grants and funding specifically for women-owned businesses.
You might also consider checking USA.gov for additional federal loans or grants.
How do you dissolve a business in Rhode Island?
While you’re focused on starting your new business right now, it doesn’t hurt to know what to do in the event that things go poorly and you need to close.
To dissolve a business in Rhode Island, you’ll need to fill out and file the Articles of Dissolution. This form will cost $50 to file.
Is obtaining a Workers’ Compensation Policy for the employees required?
Every business, with a few exceptions, that has one or more employees must have workers’ compensation insurance coverage. Individual owners and partners are exempt. The state requires employers to display a poster naming their insurance carrier or adjusting company.
Are any other postings required to be on display in a place of business?
Because these may vary based on the type of business, contact the State Department of Labor & Training for information about the required employer postings.
How can a business know when to charge sales tax?
If you plan on selling anything, you’ll need to obtain a Permit to Make Sales at Retail in order to charge sales tax. The state tax rate is a set rate of 7% for the whole state. You will also need to obtain a Federal Tax Identification Number from the Federal Internal Revenue Service.
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