Rhode Island has a structured tax framework that applies to C corporations, S corporations, partnerships, LLCs, and LLPs conducting business or earning income within the state. C corporations are taxed at a flat rate of 7% on taxable income and must file a Rhode Island Business Corporation Tax Return. S corporations, partnerships, LLCs, and LLPs are treated as pass-through entities, with income flowing to members or partners, who report it on their individual returns.
The state enforces strict deadlines for filings, requires estimated tax payments once liabilities cross specific thresholds, and imposes penalties and interest for late filings or payments. Extensions are available through federal alignment or by using Form 7004, granting six months of extra time.
This blog walks through the taxation of different business entities in Rhode Island, focusing on filing obligations, due dates, estimated payments, penalties, and extensions.
C Corporation Income Tax
C corporations that conduct business in Rhode Island or earn income within the state must file a Rhode Island Business Corporation Tax Return (Form RI-1120C).
Tax Rate
- Rhode Island levies a flat 7% corporate income tax on taxable income.
Filing Requirements
- Form RI-1120C must be filed by all C corporations doing business in Rhode Island or earning income from Rhode Island sources.
Due Date
- For calendar-year taxpayers, the return is due on or before the 15th day of the fourth month following the end of the tax year.
Extensions
- Corporations may request an automatic six-month extension to file Form RI-1120C using Form 7004.
Estimated Tax Payments
- Corporations must make estimated tax payments if their annual tax liability is expected to be USD 500 or more.
- Payments are made on Form RI-1120ES.
- Quarterly installments are due on the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year.
- Each installment must equal 25% of the total annual tax due.
Penalty and Interest
- Late filing: 5% per month of unpaid tax, capped at 25%
- Failure to pay: 0.5% per month, capped at 25%
- Late payment: Interest at 12% per year or 1% per month
S Corporation Tax
S corporations in Rhode Island that conduct business or earn income within the state must file an information return.
Pass-Through Status
- S corporations are pass-through entities. Income and losses flow directly to members or partners, who report them on their individual tax returns.
- Tax rates apply at the individual member’s personal income tax rate.
Due Date
- Returns are due on or before the 15th day of the third month following the end of the corporation’s calendar year.
Filing Requirements
- S corporations must use Form RI-1120S to file their information return.
Extensions
- An automatic six-month extension may be requested using Form 7004.
Estimated Tax Payment
- S corporations must make estimated payments if expected liability is USD 250 or more for the year.
- Payments are made using Form RI-1040ES.
- Installments are due on the 15th day of the fourth, sixth, and ninth months, and on the 15th day of the first month of the following taxable year.
Interest and Penalty
- Late filing: 5% per month of the unpaid tax, capped at 25%
- Failure to pay: 0.5% per month, capped at 25%
- Late payment: Interest at 12% per year or 1% per month
Partnership, LLC & LLP Tax
Partnerships, LLCs, and LLPs in Rhode Island that conduct business or earn income within the state must file an information return.
Pass-Through Status
- These entities are treated as pass-through entities, with income and losses flowing through to members or partners, who report them on individual returns.
- Tax rates are based on each member’s personal income tax rate.
Due Date
- Information returns are due on or before the 15th day of the third month following the end of the entity’s calendar year.
Filing Requirements
- Partnerships, LLCs, and LLPs must file Form RI-1065 to report taxable income.
Extensions
- An automatic six-month extension to file Form RI-1065 may be requested using Form 7004.
Estimated Tax Payment
- Partners must use Form RI-1040ES to make estimated payments.
- Payments are required if expected tax liability is USD 250 or more for the year.
- Installments are due on the 15th day of the fourth, sixth, and ninth months of the tax year, and the 15th day of the first month of the following year.
Interest and Penalty
- Late filing: 5% per month of the unpaid tax, capped at 25%
- Failure to pay: 0.5% per month, capped at 25%
- Late payment: Interest at 12% per year or 1% per month
Conclusion
Rhode Island’s taxation system applies consistently across entity types, with C corporations taxed at a flat 7% rate and S corporations, partnerships, LLCs, and LLPs treated as pass-through entities. Filing deadlines are clearly set, estimated payments are required once liability crosses modest thresholds (USD 250–500), and penalties for late filing or payment are significant.
Extensions through Form 7004 provide flexibility, but timely compliance remains critical. Businesses operating in Rhode Island must carefully track their filing obligations and payment schedules to stay compliant and avoid penalties.
