How to Get a Small Business License in Rhode Island

Are you looking to start a small business in Rhode Island? If so, make sure you follow the state's regulatory requirements and obtain the necessary licenses and permits for your business.

Here's a look at the different licenses, permits, and registrations you need to start your Rhode Island business.

Which Business Licenses Do You Need for Your Small Business?

When starting a business in Rhode Island, you must:

• register your business entity with the Rhode Island Department of State (DOS)
• file taxes with the Rhode Island Division of Taxation (DOT), and
• apply for business licenses and permits with your state, county, and town.

Your business structure, industry, and location will determine what kinds of licenses and permits your business must apply for. The main types of business licenses, permits, and registrations are:

• general business licenses
• professional licenses
• seller's permits (sometimes called "sales tax certificate" or a similar name)
• zoning and building permits, and
• doing business as (DBA) registrations.

(For more general guidance, see our article on the legal requirements for starting a small business.)

General Business License in Rhode Island

In Rhode Island, like in many other states, you don't need to obtain a general business license to operate within the state. Instead, your company might need to obtain a license specific to your location or business activities.

The DOS's Business Assistant is a great place to start when you want to learn more about the licenses and permits your business needs. The assistant will direct you toward applicable forms, recommendations (including guides and pamphlets), rules and regulations, and costs when you answer questions about your:

• business category and activities
• business structure
• location
• products and services, and
• employment plans.

You could need to obtain special licensing at multiple levels, including through the city, county, state, and federal governments. Oftentimes, cities require people and businesses who want to operate within the city limits to obtain a license. Some cities require every business to have a license while others require only businesses in particular industries to get a license.

For example, the City of Providence issues more than 30 different categories of licenses to businesses through the city's Board of Licenses. Not every business in Providence needs a license. However, you'll typically need to apply for a license through the city if your business provides one of the following:

• body works services
• entertainment and amusement
• expansion of premises
• liquor
• restaurant and food
• sales and auto, and
• individual services.

You can apply for and renew many of your licenses and permits online through the City of Providence's government website. Licensing fees vary by license type.

Visit your city's website or contact local officials to determine whether your business operations require a license. In general, every city will have its own procedure and license fees.

Professional and Occupational Licenses for Businesses and Individuals in Rhode Island

Before you begin practicing in Rhode Island, you'll need to make sure you have the licenses and certifications required for your profession or occupation. Depending on your area of practice, you might be required to have two separate licenses: one for you and one for your business.

You can find licensing information for many professions and occupations via the:

• Professional License Renewal webpage on the state website
• Professional Regulation webpage on the Department of Labor and Training website, and
• What We License webpage on the Department of Health website.

You can typically access a webpage for each license through each website. The webpage typically gives you details about:

• how to apply for and renew your license
• licensing fees
• examination information
• continuing education requirements
• board members, meetings, and contact information
• laws, rules, and regulations
• resources, and
• frequently asked questions.

Your occupation or profession might not be included on these websites. Instead, you could need to directly contact your department, board, or commission to learn more about the licensing requirements in your industry. You should start by doing an internet search of your occupation to find your regulatory authority's website.

Keep in mind that every profession and occupation has its own rules and requirements. For instance, your profession might require you to pass an initial licensing exam or complete continuing education courses. Make sure you're aware of what you need to do to obtain your license and maintain it.

Rhode Island Retail Sales Permit

In general, if you sell or lease tangible personal goods or provide taxable services, then you're required to collect and pay sales tax in Rhode Island. You must register your business with the DOT for sales tax and apply for a retail sales permit if you sell either:

• products, regardless of whether those products are taxable, or
• taxable services.

You can complete your Business Application and Registration (BAR) online using the DOT's Combined Online Registration Service. You can also register your business for income withholding tax and an unemployment insurance account using the same application. You won't need to pay a fee to obtain your retail sales permit. But other fees might apply when registering your business.

Visit the sales and use tax section of the DOT website for more information, including answers to frequently asked questions, links to relevant laws, and contact information.

You should also check with your city or county to learn about their tax reporting requirements.

Local Zoning and Building Permits

In some cases—for example, if you plan to build a new space or renovate an existing space—you'll need to get special zoning and building permits from your city or county. To get the required permits or special zoning, you'll typically need to go through a review process that usually consists of filing an application, attending meetings with local officials, and passing final inspections.

If your work will be more extensive, you could also need to submit site plans or hire a professional architect or engineer. Sometimes, at the end of the process, if the city or county has signed off, you'll receive a clearance letter (or similar document) that allows you to start occupying your commercial space.

Rhode Island has created a statewide online permitting system that cities can implement. You can submit an application for a city permit using Rhode Island's Permitting Portal. You can use the portal to fill out applications, submit plans, and manage inspections.

Visit your city's website for more information about the local permitting process. For example, the City of Providence's Department of Inspections and Standards (DIS) handles the city's building and zoning permits, including permits for:

• roofing and siding
• doors and windows
• electrical
• mechanical
• plumbing
• fire alarm, and
• zoning certificates.

You can apply for these permits online using the state's e-permitting process. On the DIS website, each permit has a webpage where you can learn more about when the permit is required, how much the permit costs, and the permitting process. The webpage should also direct you toward the relevant sections of the city code.

You should talk to your local officials or visit your city or county website for information related to building permits and inspections. Be sure to also review your local code and ordinances to figure out which zoning and building requirements apply to your business and planned operations.

Zoning laws. If your type of business isn't in line with the zoning code, it could be a good idea to look for another space for your business. Alternatively, you might be able to apply for a special use permit. A special permit can provide your business with an exception to the current use laws.

Building code. You can work with local departments and agencies to apply for building and construction permits. You'll likely need to have inspections related to your space's structural, electrical, mechanical, and plumbing features.

If you're interested in leasing a commercial space, make sure you have a section in the commercial lease that ensures that the building and your use of the space are in line with the zoning laws.

Registering a Trade Name or Fictitious Business Name in Rhode Island

In general, in Rhode Island, if you do business under a trade name (also called an "assumed name," "fictitious business name," or "DBA") then you must register your name. The registration requirements depend on your business structure.

Sole proprietors and general partnerships: If you use a name for your business that's not your real name (or you and your partners' real names for a general partnership), then you must register your business name with your town or city clerk. For example, if you run a fabric store called "Fabric by the Foot" as a sole proprietor in Providence, then you'll need to register your trade name with the Providence city clerk. (R.I. Gen. Laws § 6-1-1 (2024).)

Corporations, limited liability companies (LLCs), and other registered businesses: If your company is registered with the DOS and it uses a name that's different from the name it has registered with the DOS, then your company must file a fictitious business name statement. The statement must be filed with the DOS. For example, suppose you organize an LLC under the name "Adventure Sailing, LLC" but you do business using the name "Sail to Adventure." You'll need to file a Fictitious Business Name Statement with the DOS. (R.I. Gen. Laws § 7-16-9 (2024); R.I. Gen. Laws § 7-1.2-402 (2024).)

As of 2024, the fee to file a fictitious business name statement is $50. Filing fees among cities and towns can vary. You can visit your city or town website for more information about trade name filing requirements.

Other Licenses and Permits Your Business Might Need

Apart from the licenses and permits discussed above, your business could be required to comply with other laws and regulations. For instance, your business could need to apply for special licensing or follow special rules related to:

• safety
• health, and
• the environment.

Sometimes, these regulatory areas are encompassed within other licenses, permits, and registrations. However, at other times, these licenses and permits will require a separate process altogether. If you're in a highly regulated field, be prepared to apply for multiple licenses and permits. For example, if you're running a plant that could potentially affect water streams or air quality, then you'll probably need to follow additional protocols.

The regulatory requirements vary depending on the city or county involved. You should check the websites for the city and county where you'll operate your business for more information. Some businesses might be exempt from local licensing requirements under state or federal law.

Check with your federal, state, and local governments for more information.

Additional Information for Small Businesses in Rhode Island

The DOS has step-by-step instructions for forming a business on its website. The steps include:

• finding a unique business name
• choosing a business structure
• registering your business
• getting an employer identification number (EIN)
• registering for business taxes with the DOT, and
• filing a beneficial ownership information report.

In addition, you should take advantage of the DOS's Business Assistant tool. You can also check out the business basics section of the DOS website for more detailed guidance about launching your business.

The U.S. Small Business Administration (SBA) is an excellent free resource for new businesses, particularly for finding funding and financial counseling. The SBA has a district office in Providence. The office's website lists upcoming events, resources, and news for small businesses.

Business owners should also check out the Rhode Island Small Business Development Center (SBDC). The SBDC provides services, training, and resources to businesses, including information about licenses, permits, and business regulations.

This article covers only the most common small business licenses and registrations in Rhode Island. In addition to the state resources, you can also find more information on the small business section of our website. If you want to learn even more, you can also read Legal Guide for Starting & Running a Small Business, by Fred S. Steingold (Nolo), and The Small Business Start-Up Kit, by Peri Pakroo (Nolo).

If you'd like more personalized, professional help, you should talk to a Rhode Island business attorney. If possible, you should try to work with a lawyer who has experience assisting businesses in your industry. An attorney can help you work through local or state licensing and permitting processes.